The post Ethereum Shows Signs of Trend Reversal as Descending Channel Breaks appeared on BitcoinEthereumNews.com.

Altcoin Analysis Ethereum is attempting a technical breakout after spending months trading inside a well-defined descending channel. On the 12-hour chart, ETH has pushed through the upper boundary of that structure, a move traders often associate with a potential trend reversal rather than a short-lived bounce. The breakout comes after repeated defenses of the lower support zone, suggesting sellers are losing momentum while buyers gradually regain control. Price action near the channel’s ceiling has been accompanied by improving momentum signals, strengthening the bullish case in the near term. Key Takeaways Ethereum has broken above a long-standing descending channel on the 12-hour chart Momentum indicators such as RSI and MACD are turning bullish The former channel resistance near $3,000-$3,100 is now key support Upside zones to watch include $3,410, $3,770, $4,250, and $4,680 Descending Channel Breakout Changes the Technical Picture For most of the past quarter, Ethereum respected a downward-sloping channel, with lower highs consistently capping upside attempts. The latest move breaks that pattern, shifting market structure toward higher highs and higher lows on lower timeframes. The former channel resistance now sits close to the $3,000-$3,100 area, a zone that traders will watch closely for confirmation. Holding above it would reinforce the breakout narrative, while a sharp rejection could signal a false move. Momentum Indicators Turn Supportive Momentum indicators are starting to align with the bullish breakout scenario. On the 4-hour chart, RSI has moved into the upper range, hovering near overbought territory. While this can sometimes precede short-term pullbacks, it also reflects strong buying pressure during early breakout phases. MACD has crossed into positive territory with expanding histogram bars, pointing to strengthening upward momentum. Together, these indicators suggest that dips may continue to attract buyers rather than trigger aggressive selling. Key Levels and Upside Zones in Focus With the descending…

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Filed under: News - @ January 4, 2026 1:29 pm