Ethereum: Buy Signal for ETH? Double Bottom on Price Chart Indicates…

Ethereum: Buy Signal for ETH? Double Bottom on Price Chart Indicates…
Ethereum: Buy Signal for ETH? Double Bottom on Price Chart Indicates…
  • A bullish double bottom price action pattern has been spotted on Ethereum on the 4-hour time frame.
  • Short sellers do not expect ETH to reach the $3,250 level, if it reaches this level, short positions worth $1.65 billion will be liquidated.

The second largest cryptocurrency in the world Ethereum [ETH] has seen a price increase of over 5.5% following the recent Ethereum ETF (exchange-traded fund) update in the United States.

Following this ETF update, the overall cryptocurrency market turned green and investor sentiment changed positively.

With this impressive price momentum over the past 24 hours, ETH has just reached close to the 200-day exponential moving average (EMA). Moreover, it is just one candle away from being bullish as it is slightly behind the 200-day EMA.

Ethereum bullish double bottom breakout

According to the technical analysis of experts, ETH looked bullish as it formed a double bottom price action pattern on the 4-hour time frame and on a neckline near the $3,085 level.

If the 4-hour candlestick breaks out and closes above the neckline, there is a strong possibility of ETH reaching the $3250 and $3300 levels.

Source: TradingView

Moreover, this optimism on the Ether chart is also receiving support from the Relative Strength Index (RSI), which is in the oversold area and signals a possible recovery.

Despite this bullish double bottom pattern, ETH has been consolidating within a tight range between the $2,850 and $3,080 levels for the past five days.

However, this consolidation is occurring at an important support level, and a break or breakdown of this consolidation zone can result in significant price momentum in either direction.

Source: TradingView

Strong support level and liquidation area for Ether

However, ETH has hit this level more than four times since April 2024. Regardless of market conditions, ETH prices have consistently bounced back to the $3,250 level or the $3,670 level, as shown by historical data on a daily chart.

This time, traders expect a similar price rise from this level.

Following the ETF update, ETH’s open interest (OI) increased by more than 5.5%, indicating that investor and trader interest and confidence have returned, according to data from on-chain analytics firm CoinGlass.

Meanwhile, traders liquidated a remarkable $59.94 million of their positions, of which bulls liquidated $23.75 million of long positions and short sellers liquidated a remarkable $36.16 million of short positions, according to data from CoinGlass.

If ETH hits the $3250 level in the next few days, nearly $165 billion worth of short positions will be liquidated. Over the past seven days, short sellers have been waiting for ETH to fail to reach the $3250 level, according to the latest liquidation data from CoinGlass.

Fuente: CoinGlass

Learn The Ethereum [ETH] Price prediction 2024-2025

At the time of writing, ETH was trading near the $3,075 level and experienced a 5.5% price increase in the past 24 hours.

If we look at ETH’s performance over a longer period, it has lost almost 10% of its value. While in the last 30 days, ETH has dropped by 16%.

Next: Could Solana ETFs Arrive Sooner Than Expected?

This is an automatic translation of our English version.

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