Ethereum Could Stage Strong Rally As Double Bottom Pattern Emerges

Aayush Jindal

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Ethereum nosedived below the $202 support zone against the US Dollar. ETH price revisited the $192 support and it seems like there is a key double bottom pattern forming near $192.

Ethereum declined more than 5% and it tested the main $192 support zone.
It seems like there is a double pattern forming near the $191-$192 zone.
There is a key bearish trend line forming with resistance near $202 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could either fail near $202 or start a major upward move towards the $210 level.

Ethereum Price Could Recover Sharply

The past few sessions saw a sharp rise in selling on Ethereum and bitcoin against the US Dollar. BTC price dropped below the $9,250 support level and ETH price nosedived below the $200 handle to move into a bearish zone.

The recent decline was such that ether even broke the $195 level and settled below the 100 hourly simple moving average. However, the main $191-$192 support zone acted as a strong buy zone.

A low is formed near the $191 level and the price is currently rising. It seems like there is a double pattern forming near the $191-$192 zone. The price is now trading above the 23.6% Fib retracement level of the recent drop from the $215 swing high to $192 swing low.

On the upside, there is a key hurdle forming near $202 and $204. There is also a key bearish trend line forming with resistance near $202 on the hourly chart of ETH/USD.

The trend line is close to the 50% Fib retracement level of the recent drop from the $215 swing high to $192 swing low. A successful break above the trend line and the $204 level is needed to confirm a double bottom pattern.

In the mentioned bullish case, there are high chances of a sustained upward move towards the $210 and $212 levels in the coming sessions.

Another Failure?

If Ethereum fails to clear the $202 and $204 resistance levels, there could be another decline. An initial support on the downside is seen near the $195 level.

The main supports are near the $192 and $191 levels. If the bulls fail to protect $191, the price is likely to decline sharply towards $182 and $180.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now recovering nicely towards the 50 level.

Major Support Level – $192

Major Resistance Level – $204

Take advantage of the trading opportunities with Plus500

Risk disclaimer: 76.4% of retail CFD accounts lose money.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.