ETH faced resistance at $2,446 on December 28th, leading to a downward turn and a reentry into the descending channel on December 29th. This indicates active bearish sentiment at higher levels. A slight advantage for the bulls is that they have managed to prevent the price from dropping below the 20-day EMA ($2,270). Nevertheless, if buyers don’t push the price back above the channel in the coming days, selling pressure could intensify. Ethereum supply on exchanges has reached 8.04% of the asset’s total supply, as per data. Altcoin supply on exchanges often has an impact on price, and a decrease in supply is seen as a bullish sign, indicating a potential decline in selling pressure on ETH.
At the time of writing, ETH was trading at $2,377.
ETH was facing stiff resistance at the previous high of $2,146. However, the bulls finally were able to break the long held resistance and the prices surged up to $2,455. The asset is facing stiff resistance at the key level of $2,400 (Horizontal Trendline) and is not able to give a daily closing above that. The longer upper shadow around $2,400 indicates selling around these levels. Hence, to further rally, ETH needs to close and sustain above $2,400 whereas $2,150 will act as a strong support for the asset.
| Support 2 | Support 1 | Asset | Resistance 1 | Resistance 2 |
| $1,950 | $2,150 | ETH | $2,400 | $2,750 |
