Ethereum eyes rebounded to $3000, 39% of the ETH price rebound triggered the classic bullish pattern

The price of ether (Ethereum) Jumped to a three-week high on Monday, by Bitcoin (Bitcoin) The market emerged after rumors about Amazon’s entry into the cryptocurrency space.

The recruitment information of the retail giant shows that it is looking for an executive to develop its “digital currency and blockchain strategy.”At the same time, according to Amazon internal sources, global media reports have been speculating Will start accepting Bitcoin As payment. Therefore, after the news came out, the BTC/USD exchange rate surged to a six-week high.

Ether, its 30 days Correlation Bitcoin, which accounts for 88%, also soared due to rumors of Amazon’s encryption integration. On Monday, the ETH/USD exchange rate surged to an intraday high of $2,390, the highest level since July 8. As of 12:20 GMT, the currency pair rose more than 6.7%.

In recent trading days, Ether has bottomed twice in a row, close to $1,700. Source: TradingView

However, measured from the bottom of $1,720 before Tuesday, the net upside rebound was 38.94%.The retracement looks strikingly similar to the bullish price movement between June 22 and July 7, where ETH/USD rebounded over 40% After bottoming out at $1,700.

In other words, Ether bottomed twice at around $1,700 and then rebounded 38%-40% higher. Analyst Jonny Moe found a mirror retracement move and ruled it out as a double bottom pattern.

Bullish setting

In detail, a double bottom is a bullish trend reversal pattern consisting of two troughs where the neckline resistance hangs near the same level. As it plays, the price will eventually reverse as the neckline resistance of support and rise to the height of the highest pattern.

Ether conforms to the description. It has formed two consecutive bottoms at around $1,700. At the same time, its neckline resistance is close to US$2,390. Therefore, the height of the largest model is 690 USD.

The envisaged price of Ether’s double bottom setting is around US$3,000. Source: TradingView

If the ETH/USD price breaks through the neckline resistance of 2,390 USD, accompanied by a surge in trading volume, it is expected that the currency pair will continue to rise by about 690 USD. This will roughly bring it closer to $3,000 (based on historical price movements, $2,948 is used as a psychologically bullish target).

confluence

Another technical model predicts that the price of Ether will be close to USD 3,250, thus exceeding the upside target set by the double bottom.

related: Ethereum rebounds, but ETH price is in danger of turning 230 USD into new resistance

Known as a descending wedge, this pattern is formed when the price trades lower in a range that starts wide but contracts during a downtrend. It eventually causes the price to break bullish, while setting its profit target at a level that is usually above the height of the wedge (if measured from the breakout point).

Ethereum’s falling wedge setting. Source: TradingView

Therefore, the ETH/USD exchange rate seems to be experiencing a bullish breakout, as confirmed by the close of high volume above the wedge-shaped resistance trend line. The profit-taking target currently set is to break above the level of $1,208, which brings the price to $3,257.

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