Why Ethereum Bulls Have Now Opened the Gates for a Move Towards $400
Ethereum is beginning to flash some signs of strength following its intense movement upwards seen yesterday.
Although it remains highly correlated with Bitcoin and the aggregated market, its ability to establish a strong foothold within the $240 region is a positive sign for its short-term outlook.
One trader is now noting that the price action seen yesterday has completely altered its trajectory, opening the gates for it to see a movement towards the upper-$300 region in the coming weeks.
This price region also coincides closely with the neckline of a double-bottom pattern that could lead it to see some serious upside in the near-term.
Another trader explained that a break above this neckline could be all that is needed for the digital asset to enter a full-fledged bull trend that sends its price surging significantly higher in the months ahead.
Ethereum Stabilizes Following Recent Rally
At the time of writing, Ethereum is trading down marginally at its current price of $244.50. This is around the price at which it has been trading throughout the past day.
It has faced some resistance within the mid-$200 region, but buyers’ present strength likely outweighs that of the selling pressure at this level.
For ETH to push higher in the near-term, it is imperative that Bitcoin also does the same.
Because the benchmark digital asset is showing some tempered signs of strength, it’s a possibility that it will begin climbing higher in the near-term.
Once Ethereum breaks the upper boundary of its macro trading range at $250, this will catalyze some immense momentum that allows it to fly higher.
As for just how high it may go, one analyst recently explained that a technical pattern is currently suggesting that a move up towards $385 may be imminent.
“ETH: What a diff a day makes. iHS- target $265-275. C&H- target $333-386. If/when these resolve up, they will bring BTC w/them most likely,” he said.
Image Courtesy of Josh Olszewicz. Chart via TradingView.
This Potential “Double Bottom” Pattern Could Send ETH Rocketing Higher
Another analyst noted that Ethereum has been forming a potential double bottom pattern that will be confirmed if the crypto can push past $365.
He notes that a break above this level would open the gates for serious upside.
“Ultimately, this ETH break higher would continue to paint the picture of a multi-year double bottom, with a neckline at $365. If the double bottom completes over $365, use your imagination for how high we go.”
Image Courtesy of Jonny Moe. Chart via TradingView.
For Ethereum to break its current range and start ascending towards this key level, Bitcoin must create a tailwind that lifts it higher.
Featured image from Shutterstock. Charts via TradingView.