Key Insights
- Ethereum price has received buying pressure in the demand zone.
- ETH price has formed a triple-bottom pattern on a weekly time frame.
Since mid-2022, the Ethereum (ETH) price has remained bullish and has climbed to the $4 mark from $1K. Ethereum price has managed to defend a major support zone of $2,250 in 2024.
The price has formed a triple-bottom pattern in this zone and the received buying pressure. Ted Pillows, a market analyst, has dissected this situation and stated that ETH has recovered from significant support and may be approaching its all-time highs.
ETH Price Forms Triple-bottom — Time for Reversal?
An asset is said to exhibit buyer demand if it tests or pulls up or down to the same support level three times without breaking through the level.
This is known as the triple-bottom pattern. Ethereum has maintained strong support at the $2,160 mark, preventing further declines in the cryptocurrency.
Because selling pressure seems to be lessened, there is a high chance of an upward breakout.
This is demonstrated by the fact that the price of $4,092 has been rejected numerous times during testing events.
If Ethereum starts to move above this level, it would suggest that the upward trend toward $4,817 is likely to continue where it left off.
The level suggests that ETH may see another uptrend, which could reverse this pessimistic outlook if the buyer regains control.
Ethereum Price on the Verge of a Breakout
When writing, Ethereum crypto was trading at $2,709.00, which has escalated by 1.12% over the past 24 hours.
The market capitalization was around $226.53 Billion and the 24-hour trading volume was around $17.82 Billion.
In the 4-H time frame, the ETH price has formed a symmetrical triangle pattern. Additionally, it was wandering in the breakout territory and exceeded the 20-day EMA.
If the ETH price breaks out from the triangle, buyers might participate. If the trading volume supports this breakout, strong buying momentum can be anticipated.
Once the price climbs over the 200-day EMA, buyers might be confident and a sharp rally can be seen.
On the other hand, if the price slips below the lower trendline, it could be a bearish signal. If the price sustains below the trendline, most traders and investors would prefer to book a profit. Here, profit booking could lead to a decent fall.
RSI has kept rising and triggered a golden crossover with the RSI-based moving average. MACD and Signal line has entered the positive territory and the histograms have remained green for a longer time. Furthermore, the technical indicators are favoring the bullish forecast.
ETH Price Overview Turns Positive with New Pattern
Ethereum’s price action suggests a promising outlook as it has formed a triple-bottom pattern around the key support level of $2,160.
With increasing buying pressure and bullish sentiments in the market, there is substantial potential for an upward breakout.
The current trading patterns, including the symmetrical triangle formation and positive technical indicators such as the rising RSI and a strong MACD, further reinforce the likelihood of a bullish trend.
However, traders should remain cautious; a slip below the support trendline could indicate bearish conditions.
Monitoring trading volume and price movements around critical levels will be essential in determining the next steps for Ethereum’s price trajectory.
Overall, the outlook appears optimistic, with the potential for a significant rally if buyer momentum continues.
