Ethereum Could Rally Sharply 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 declined recently, but it stayed above the key $355 support against the US Dollar. ETH price is likely to accelerate higher as it seems like a double bottom pattern is forming near $355.

Ethereum declined below the $370 support, but it stayed above the $355 support.
The price holding the main $355 support, but it is below the 100 hourly simple moving average.
There is a connecting bearish trend line forming with resistance near $370 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must stay above the $355 support level to start a fresh rally in the near term.

Ethereum Price Likely Forming A Key Bottom

In the past three sessions, Ethereum faced an increase in selling pressure below $375. ETH price broke the $370 support zone and it even settled below the 100 hourly simple moving average.

However, the bulls were able to protect the key $355 and $350 support levels. A low is formed near $355 and the price is currently consolidating losses. It seems like there is a double bottom pattern forming with support near $350.

On the upside, an initial resistance is near the $362 level or the 23.6% Fib retracement level of the recent decline from the $384 high to $355 low. The main hurdle for ether price is near the $370 level.

Ethereum price trades below $370. Source: TradingView.com

There is also a connecting bearish trend line forming with resistance near $370 on the hourly chart of ETH/USD. The trend line coincides with the 100 hourly simple moving average and the 50% Fib retracement level of the recent decline from the $384 high to $355 low.

A successful close above the $370 resistance might validate the double bottom pattern. In the stated case, the price is likely to continue higher towards the $390 and $400 resistance levels in the near term.

Downside Break in ETH?

If Ethereum fails to clear the $370 and $375 resistance levels, there is a risk of a downside break. The main support is near the double bottom zone at $355 and $350.

If there is a downside break below the $350 support zone, ether is likely to continue lower. The next major support is near the $342 level, below which the price might revisit the $330 zone.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is currently just above the 40 level.

Major Support Level – $355

Major Resistance Level – $370

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.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.