Crypto price prediction: Ethereum (ETH) bearish momentum indicates weak buying pressure

 Ethereum (ETH) crypto analysis:

Ethereum has experienced significant liquidations in the past 24 hours. According to data from Coinglass, futures liquidations for Ethereum totaled $65.43 million. This amount includes $48.28 million from long positions and $17.15 million from short positions. Such liquidations usually occur when traders’ positions are forcefully closed due to price movements against their predictions.

On the price chart, Ethereum is currently testing the lower boundary of a descending channel. Previously, it faced rejection near the $2,817 level, making it a crucial resistance point. If Ethereum closes with high volume below this descending channel, it may drop further, possibly reaching as low as $1,200. This could happen if the important support level near $2,150 fails to hold.

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However, if Ethereum finds support at the lower boundary of the channel, there is a chance for a recovery. In that case, the price could move upward to test the upper resistance line of the descending channel. If Ethereum manages to break out of this pattern, it might spark a rally, pushing the price toward the $4,500 level in the long run.

A key area to watch is the price range between $2,817 and $2,150. Ethereum has been moving within this range since early August, suggesting a strong consolidation zone. If Ethereum continues to face rejection at the upper level of $2,817, it may stay within this range for some time before making a decisive move.

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Technical indicators suggest that bearish momentum is currently in control. Both the Relative Strength Index (RSI) and the Stochastic Oscillator (Stoch) are below their neutral levels, indicating weak buying pressure. This suggests that Ethereum may struggle to gain upward momentum in the short term unless there is a shift in market sentiment.