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Ethereum (ETH) is showing signs of a potential bullish breakout, supported by a bullish fractal pattern and a forming double bottom on the ETH/BTC chart.
Despite consolidating within a narrow range over the past week, Ethereum has maintained a strong position above the 200-day EMA trendline on the weekly chart. This positive technical indicator, coupled with recent bullish developments, suggests that a significant price increase may be imminent.
Bullish Fractal Formation
Ethereum’s price action has been forming a market fractal, a repeating pattern that has previously led to bullish breakouts. The current fractal pattern, similar to those seen in 2021 and 2024, indicates that Ethereum may be in the final phase of a bullish cycle.
The formation of a lower high in the recent price movement confirms the completion of the V phase of the fractal. This pattern, along with other technical indicators, suggests a strong possibility of a bullish breakout in the coming weeks.
Double Bottom Potential
In addition to the fractal formation, the ETH/BTC chart is hinting at a double bottom pattern. This technical indicator, often seen as a sign of a bullish market reversal, has a high probability of success, especially when formed over longer timeframes.
However, the analyst’s identified double bottom is currently incomplete, as the price has not yet retested the resistance line of $0.041. If Ethereum can successfully retest this level, it would strengthen the double bottom pattern and increase the likelihood of a bullish breakout.
Short-Term Price Prediction
While the fractal pattern and double bottom formation suggest a bullish outlook, another analyst believes that Ethereum may experience a short-term dip to $2,085 before the final breakout. This potential dip could complete a triple bottom fractal and set the stage for a more substantial price increase.
Overall, Ethereum’s technical indicators are pointing towards a potential bullish breakout. The formation of a bullish fractal and the possibility of a double bottom on the ETH/BTC chart suggest that a 40% rally from the current price may be on the horizon. However, it’s important to note that the market remains volatile, and short-term price fluctuations are possible.
Also Read: Ethereum Resilient – Prices Rise 0.66% Despite BTC Dip Below $59K – Key Support At $2,250
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
