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In our previous Ethereum analysis Ethereum Sell-Off Intensifies! Can This Key Support Hold? we talked about the major support region on the Ethereum 4-hour timeframe.
The ETH price is still trading around this key region but is also forming a bullish double bottom pattern as we speak. This pattern might be a signal that the Ethereum sell-off might just be coming to an end soon.
And in this Ethereum analysis, we will be breaking down what this pattern means for the ETH price as well as the key levels we will be watching out for in the coming days.
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Significance Of This Double Bottom Pattern
This Double Bottom Pattern is very significant to the Ethereum price because of its location. It is currently forming at a key level in the 4-hour timeframe.
If this pattern completes, this could be the beginning of a bullish reversal in the Ethereum price. But for it to be completed and ready to be traded, the ETH price must break through and close above the Previous Highs.
Only a bullish close like the image above signifies the end of the Ethereum sell-off and a potential rally in the Altcoin price in the coming days.
However, until this bullish move happens, we want to stand aside and wait for the breakout and price confirmation.
Final Verdict!
The Ethereum is currently forming a bullish pattern at a major support level in the 4-hour timeframe. If this pattern completes (i.e the ETH price breaks through the Previous Highs) there is a very high probability that we might see a bullish reversal start to play out.
However, that Double Bottom Pattern is still yet to be completed during the time of writing this technical analysis, and the best course of action, till it is completed, is to stand aside and wait.
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