After a break of two months, most of the cryptocurrencies are back with an upward trend.
On March 28, Ethereum price hit nearly $3,350 after the price increased by 30% in just two weeks and on January 24, the currency had surged by more than 50% when compared from its year-to-date low of around $2,160.
ETH Forms Double Bust Pattern
In this course of events, the ETH/USD pair looks to have busted, which earlier appeared to have formed a symmetrical triangle or bearish continuation setup.
Busted pattern occurs when the breakout is in one direction but the price movement reverses. Hence this brings a hope that in the coming days, Ether can move towards the triangle pattern’s target at $4,000.
However, traders should be cautious as sometimes symmetrical triangles have a double-bust pattern where the final breakout direction often ends up to be the same as the original one.
So basically, a double-bust pattern is where Ether could soon stop being bullish and form a reverse pattern towards the symmetrical triangle’s top.
On the flip side ETH may retest its support-turned-resistance range which earlier was a selloff area for traders in the January-February session as mentioned in the chart .
Hence, this could also activate another selloff near the range causing double-bust risks, causing Ether’s price to drop towards the symmetrical triangle’s downside target at $1,800.
However, it is worth noting that double-bust setup will be invalid if the price rises above the resistance range of $3.5k and surge towards $4k.
Another independent market analyst PostXBT, claims that if Ethereum flips around $3,350 back to support could push the price towards $4,000
Ethereum Price To Rise With Decreased Supply !
The 30% rebound of Ethereum price rally occurred along with Ethereum Beacon Chain’s merge with the Kiln testnet, indicating blockchain to completely move towards proof-of-stake.
For traders to become validators, they are required to lock up or stake 32 ETH and wait for 18 months. In return, they would receive annual yields in the same token that is staked.
As a result, analysts believe Ether price to rally with an decreased supply, particularly if demand stays the same or continues to rise.
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Source: https://coinpedia.org/ethereum/ethereum-double-bust-pattern-2k-or-4k-whats-next-for-eth-price/