Analysis

Ethereum Could Stage Strong Rally As Double Bottom Pattern Emerges

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.

Ethereum Price

Ethereum Price

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 MACDThe MACD for ETH/USD is slowly gaining pace in the bullish zone.

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

Major Support Level – $ 192

Major Resistance Level – $ 204

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Analysis – NewsBTC

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