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The Altcoin market took a beating today as the Ethereum price plunged more than -3% into the red, taking most of the Altcoins down with it.
However, this price sell-off in Ethereum was unable to break below the $1,800 key support in the 1-hour timeframe.
We have talked about this $1,800 key support in numerous posts in the past, and how this horizontal level is important to the Ethereum bulls. And in our most recent post: This Is Why Ethereum Has Been Raging So Much! Watch This Level, we also warned of a likely price bounce from this $1,800 price area.
Well in this Ethereum analysis we will be talking about the likelihood of that bullish price bounce playing out in the coming days and the key Double Bottom Pattern forming right now in the 1-hour timeframe.
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Ethereum Trading At A Key Support!
The Ethereum price is currently trading at key support in the 1-hour timeframe. This $1.800 price level also serves as a major support in the higher timeframe, increasing its relevance to the ETH bulls right now.
If this key support holds there is a very high probability that we might see a price bounce and rally in the Ethereum price in the coming days.
And the key pattern we are going to use to take advantage of this potential bounce is the Double Bottom Pattern currently forming in the 1-hour timeframe.
Ethereum Double Bottom Pattern
We are seeing this key reversal pattern playing out at the $1,800 key support level in Ethereum. This makes it even more relevant for the Ethereum bulls because it increases the chance of us seeing it play out in the coming days.
However, the pattern is yet to be completed. We are currently waiting for our bullish confirmation which is a price break and close above the Previous Highs/Neckline Region of the pattern in the 1-hour timeframe.
Once we see a bullish move like this, we have our confirmation that the Ethereum short-term price bounce might have started. And we can expect to see the Altcoin push higher in the coming days.
Final Verdict!
Ethereum is currently trading at a key support level. This $1,800 key support is very important because it also plays a major role in the ETH higher timeframe and has been holding prices up for months now.
We are also seeing the ETH price form a key double bottom pattern at this $1,800 key support, increasing the potential for us to see a price bounce in Ethereum in the coming days.
Our bullish confirmation for this Double Bottom pattern is the ETH price break and close above the Previous Highs/Neckline of the Pattern.
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