Cool-off after breakout is not a sign of rally

  • ETH breaks out of a descending trendline on the long term.
  • But bulls are unable to capitalise on the breakout, rally cools off.

Ethereum, the third largest cryptocurrency by market capitalisation, was able to break out of a key descending trendline resistance on the long term chart and rallied a bit after the breakout, only to cool-off as the rally fizzled out and bulls went on year-end holidays.

ETH/USD is down about 0.3 percent on day at $139.34 and trading in about 4 percent range in weekend driven lower volatile trading. On the daily chart, this erstwhile second largest crypto broke out of a key descending trendline last week and managed to carry on the momentum for two days, only to cool-off later in this week, in a sign that bulls were not willing to carry on their positions in the year-end Christmas holidays.

On the 720-minute chart, the crypto is stuck in a parallel channel that will cap any rallies around $150-160 mark and so will the bollinger bands whose upper band is at $149 currently. As long as bulls are below these levels, it won’t be a cake walk for them to carry on the momentum built in the last few weeks.

ETH/USD daily chart:

ETH/USD 720-minute chart:

 


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