Here’s Why Ethereum Could Rally 10% Before Continuing Its Downfalladmin
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The recent widespread correction in the crypto market reverted the Ethereum price from $1800 resistance. This sell-off entirely evaporated the early September recovery and plunged the prices back to the monthly support zone of $1420. However, the price action shows reversal signs at this support, indicating a possible relief rally.
- The coin chart shows the formation of a double bottom pattern in the 4-hour time frame chart.
- Losing the $1420 could plummet the Ethereum price bac
- The intraday trading volume in Ethereum is $10.65 Billion, indicating a loss of 12.2%.
Furthermore, it’s been three days since the sellers are wrestling buyers at this support to prolong this correction. Furthermore, with a 2.575% loss, the Ethereum price is painted red today and retests the $1420 support.
If the sellers manage a daily candle closing below the aforementioned support, the accelerated selling pressure will plunge the altcoin to $1000 psychological support.
Ethereum Could Rally With This Double Bottom Pattern
The four-time chart shows a lower price rejection candle at the $1420 support indicating the traders are actively buying at this level. Moreover, the RSI indicator displaying bullish divergence to base support indicates a better possibility for price reversal.
If this theory worked out, the Ethereum price could rally 3.88% higher to challenge the $1470 neckline of double bottom pattern. A bullish breakout from this resistance will further encourage buying activity and retest the $1575 supply zone.
Anyhow, the price action at this level is crucial to influence future Ethereum prices.
Due to the accumulation of daily EMAs at this level, a possible reversal could display a lower high in the daily chart indicating a losing bearing momentum.
However, if the Ethereum price surpasses this level, it indicates the recent correction was just panic selling in the market.
Bollinger band: the falling Ethereum price retest the indicator’s band support. Such activity has previously resulted in a bullish reversal, bolstering the relief rally theory.
MACD indicator: A widespread between the bearishly aligned fast and slow line below the neutral zone indicates aggressive selling in the market.
- Resistance level- $1470 and $1520
- Support level- $1400 and $1362
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.