Ethereum broke out of the ascending channel yesterday, Jan. 7, and rose to $1,191 levels, where it witnessed profit booking. We had mentioned $1,200 as one of the possible targets in our previous analysis. If bulls manage to break out of $1,200, the next target on the upside is $1,310, which is arrived at by adding the width of the channel to the breakout point of the channel.
However, currently, the price has turned down and has entered into the channel once again, which is a negative sign. Levels that can offer support are $993.91 and $933.03, which are 38.2 percent and 50 percent retracement levels of the latest leg of the rally.
If the bulls fail to propel the ETH/USD pair back above the channel quickly, we most likely see a fall to $820, which is the trendline support of the channel increase.