Ethereum price was on its way to reaching the upper resistance level above $2,500, but the decline was halted just below $2,400. After repeated attempts to break above the rising trendline, ETH price formed a distinct bearish pattern. This may not be favorable for the bulls as there is currently a significant amount of selling pressure built up.
The second-largest cryptocurrency has a series of reversal signs predicting a downtrend. Despite the prevailing downtrend, ETH price appears to be well-prepared for a strong monthly close, thus opening a new yearly session above $2300-$2350. However, the current trading setup suggests that a bullish reversal could occur soon.
Since the price reversed from lower support in October, the rally has maintained an upward trend, hitting highs around $2,446. Despite this, the token failed to rise above the trend line that could push the level closer to $2,500. However, new price action, a continuation of the previous bearish trend, suggests that a rebound is imminent.
Moreover, DMI is heading bearish as ADX is plummeting and other signal lines are about to undergo bearish crossovers. Therefore, Ethereum (ETH) price could print another bearish candle to test the lower support around $2,179, which could trigger a healthy bounce. However, strength can be a huge concern. This is because the price can start a new uptrend only if it breaks above the uptrend line, which was the main resistance level.