The Ethereum (ETH) price faces resistance after reaching a yearly high
The Ethereum (ETH) price has experienced a decline after reaching a yearly high of $2,403 on December 9. This rejection occurred at a confluence of resistance levels, raising questions about whether the price will recover or if this is the start of a correction.
Ethereum rejected at long-term resistance
Looking at the weekly time frame, the Ethereum price has been increasing since May 2022. It has formed two higher lows, indicating an accelerated rate of increase after each low. During this period, ETH has followed an ascending resistance trend line, which was confirmed when it reached its yearly high. However, this rejection coincided with horizontal and Fib resistance.
Peter Brandt shorts Ethereum
Well-known analyst and trader Peter Brandt is bearish on Ethereum due to a long-term breakdown. He believes that if the rising wedge pattern in ETH follows the expected script, the target could be $1,000 or even $650. Brandt has already shorted ETH and has a protective stop in place.
ETH price prediction: Is a correction underway?
On the daily time frame, there are indications of a bearish trend. The ETH price broke down from an ascending support trend line and the daily RSI showed bearish divergence before the decrease. If the downward movement continues, the price could fall 10% to the closest support level. However, a breakdown below key support levels would confirm the bearish pattern.
Hot Take: Reclaiming support could lead to an increase
Despite the current bearish predictions, reclaiming the ascending support trend line could invalidate the short-term breakdown and result in a 12% increase to the yearly high. To negate the long-term bearish pattern, a weekly close above the yearly high is needed, which could lead to a 65% increase to the next resistance level.
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