- Ethereum forms a potential double top, invalidating previous cup and handle pattern.
- Breakdown below key support could confirm double top, targeting $1,200.
- Ethereum currently consolidates, awaiting a decisive breakout for directional clues.
Ethereum (ETH) faces a potential price correction after double-top pattern appears on higher timeframes. This formation negates the previously observed cup and handle pattern, which had initially suggested a bullish outlook for the cryptocurrency.
Currently, Ethereum is trading sideways within a large consolidation range. However, the emergence of the double top pattern, characterized by two price peaks at similar levels, suggests a potential trend reversal if key support levels are breached. A decisive breakdown below this support could validate the double top formation and push the token’s price to around $1,200.
Both traders and analysts are laser-focused on the support level for confirmation of the double top. A breakdown below this threshold would trigger selling pressure and drive the token on the downside target. Conversely, if Ethereum manages to hold above the support and break through the resistance level at the peaks of the double top, the bearish scenario would be invalidated, potentially leading to a retest of higher price levels.
Ethereum Mixed Technicals: Bearish Pattern vs. Whale Accumulation
Adding to the uncertainty, the volume profile during this consolidation period indicates a lack of strong directional bias. Market participants await a clear breakout from this consolidation phase to determine the next directional move.
Despite the bearish outlook, recent market data reveals a significant inflow of $300 million into Ethereum within a single day, alongside substantial acquisitions by major players, including the current US president and investment giant Blackrock. These institutional moves, as highlighted by analyst Michael van de Poppe, signal growing confidence in Ethereum’s long-term potential, suggesting that the true bull market is yet to come.
The markets have seen an inflow of $300 million in $ETH on a single day. Institutionals are buying, so should you. The real ‘bull’ market is still about to emerge.
While the double-top pattern raises concerns, it’s crucial to note that the pattern is not yet confirmed. Ethereum needs to decisively break below the support level to validate the pattern and trigger the projected price decline. Until then, the altcoin remains in a state of equilibrium, with the potential for both bullish and bearish scenarios to unfold.
Traders are advised to exercise caution and employ appropriate risk management strategies during this period of uncertainty.