Ethereum (ETH) Triangle Formation Hints At A Double Bottom: Breakout and New ATH?
September 05 2024 - 5:30PM
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Ethereum is trading near its yearly low of $2,400 after an 18% drop
from local highs. ETH has notably underperformed compared to
Bitcoin and other altcoins like Solana this cycle, leading to
investor concerns. Related Reading: Ethereum (ETH) Struggles
To Break Past $2,600: What’s Driving ETH Down? One of the key
reasons for this underperformance is the lack of enthusiasm
surrounding Ethereum ETFs. Metrics from these funds show low
interest from traditional investors, adding to the bearish
sentiment around ETH. As the crypto market is gripped by fear
and uncertainty, Ethereum traders are searching for clues on
whether a potential recovery is on the horizon. Top analysts and
investors have started sharing their views on ETH’s next move, with
many suggesting that a bounce could occur if certain technical
levels hold. If this bounce materializes, it may relieve Ethereum,
but until then, the market remains cautious. Ethereum Price Action
Suggests A Bounce Ethereum is currently trading at a critical
level that could propel the next big move if it holds support. Top
analyst and investor Mags has shared an analysis on X, revealing
that ETH has been consolidating within a massive triangle formation
since 2021. According to Mags, Ethereum is now approaching
the lower boundary of this formation, which is a crucial support
level that could define its next significant move. Mags anticipates
a potential double-bottom pattern forming near this upward-sloping
trendline, indicating that a bullish reversal may be on the
horizon. Related Reading: Is Chainlink (LINK) Sliding To $9?
On-Chain Metrics Expose Weak Network Activity Recently, the price
tested a key demand zone at $2,307, showing initial signs of
recovery. This level is essential for Ethereum’s price action, as a
hold above it could signal strength and create the foundation for a
move higher. The analysis suggests that the next target for ETH
could be new all-time highs if it breaks out of the triangle
pattern, defying the bearish expectations of many traders still
waiting for lower prices. This potential bullish scenario could
unfold if Ethereum’s price holds the lower boundary of the triangle
and gains upward momentum. A breakout would send ETH toward higher
levels, outperforming current market sentiment and surprising
investors. ETH Holding Above $2,300 Ethereum (ETH) currently trades
at $2,396 following intense volatility and market uncertainty. The
price is in a consolidation phase, which could still be susceptible
to a surprising retrace if demand weakens further. Currently, ETH
is trading below the 4-hour 200 moving average (MA) at $2,596,
aligning with the crucial $2,600 level. This level is vital for ETH
to retake if it aims to push higher in the short term. A sustained
trading position below these levels signals weakness and the
potential for further declines. For bulls, reclaiming the $2,600
mark is essential to shift the price structure and initiate a new
uptrend. Success in pushing this level could set the stage for
targeting the local high of $2,820. Related Reading: Ethereum’s
Plunge Could Be Over: This Key Pattern Signals A Rally Back To
$4,000 However, if ETH fails to close above $2,600, the next
significant support is anticipated around $2,116. The price action
in the coming days will be critical in determining ETH’s next move,
with traders watching closely for signals of either a breakout or a
deeper retrace. Featured image from Dall-E, chart from TradingView
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