Ethereum
Is Ethereum (ETH) Forming a Double Top Pattern?
Arman Shirinyan
Ethereum Could Form a Double Top Pattern, But Not the One You Fear
Read U.TODAY on
Google News
If you look closely, you may notice a double top pattern, but inverted. The inverted double top is actually bullish for the asset and suggests a price reversal to come.
Traditionally, the double top pattern is a bearish signal that denotes a change in trend from an uptrend to a downtrend. But it can also indicate the opposite when it is reversed. It seems that a bullish reversal is in the offing as this inverted double top pattern is forming on Ethereum’s four-hour chart.
According to this model, ETH The price has encountered resistance at this point, but has not declined significantly, maintaining its bullish outlook. If buyers continue to strengthen, there could be a break above the resistance level, as indicated by the second peak forming higher than the first.
An inverted double top pattern can be a sign that bullish sentiment is replacing bearish sentiment in the market. Here’s how to do it:
Increased buying pressure is indicated by the double top itself and the formation of higher lows. Investors and traders may look to buy now in anticipation of a breakout.
Support Levels: Price is still firmly positioned at $3,080 and has not broken below any important support levels. This consistency often precedes a bullish move.
It is important to pay attention to the trading volume during the formation of the pattern. The strength of the bullish reversal is confirmed if the volume increases in tandem with the price.
In light of the current situation, ETH could see a sharp price rally if it breaks the $3,130 resistance level. If this threshold exceeds $3,200, then $3,300 could be the next target. However, traders should also be wary of false breakouts.
About the Author
Arman Shirinyan
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant use in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects, and technical analysis of cryptocurrency trading pairs.