Bullish Pattern Guides Rally to $2000

The Ethereum (ETH) price shows a newfound recovery after bouncing off the $1,530 support level on October 14. This bullish reversal represents a 6.6% increase within two weeks, bringing the coin’s current trading price to $1,628. A closer look at the daily time frame suggests that this upswing could be part of a bullish reversal pattern known as a Double Bottom.

Also Read: Elevated US Treasury Yield Is Hurting Ethereum More Than Bitcoin, Here’s Why

Bullish Pattern Hints Upcoming Recovery

• The formation of a double-bottom pattern set the ETH price for a significant rally ahead
• Multiple support at $1500 indicates a high accumulation zone for traders
• The intraday trading volume in Ether is $6.6 Billion, indicating a 34% gain.

Source- Tradingview

Over the past two months, the Ethereum price has been caught in a consolidation range between $1,745 and $1,535. While the short-term trend indicates sideways movement, these specific levels are significant as they contribute to the formation of a double-bottom pattern. Historically, such patterns occurring at key technical supports have often led to significant upswings. 

As of press time, the ETH price is trading at $1,630 and faces resistance at the $1,650 level, as evidenced by a high-wick rejection candle on the daily chart. A daily candle close above this minor resistance could propel the ongoing recovery by another 5.2%, challenging the pattern’s neckline at $1,745.

Breaking above this crucial resistance would provide more reliable confirmation of a sustained recovery, potentially pushing the price up to the $2,000 mark, a gain of approximately 14.5%.

Will ETH Price Hold $1500 Support?

While the near-term outlook for the ETH price appears bullish, it’s important to note that the existing corrective trend remains in place until the price breaks above the last swing high of $1,745. Should the ongoing rally face supply pressure at this neckline resistance, the prices could experience another rejection, leading to a continuation of the sideways trend. However, a long-coming support trendline currently hovers around the $1,500 mark and offers coin holders a safety net against major corrections.

• Exponential Moving Average: The 50-day EMA slope moving around $1650 offers an additional resistance level against buyers.
• Relative Strength Index: The daily RSI slope above 50% reflects a suitable momentum to carry price recovery.