ETH/USDT Approaches Key Resistance After Double Bottom Breakout

16 oct.

hello guys!

Key Observations:

Double Bottom Pattern:
A well-defined double bottom pattern formed around the $2,307 zone.
The neckline breakout has occurred, and the price is nearing the projected target of the double bottom pattern, around the $2,730 area.

Resistance Zone (Blue Box):
The price is approaching a key resistance area between $2,680 and $2,730.
This area represents a major challenge for bulls, as it's a historical level where selling pressure previously increased.

Ascending Channel:
ETH is trading within an ascending channel, with higher lows and higher highs.
The upper boundary of the channel aligns with the resistance zone, indicating the confluence of a strong resistance level.

Potential Targets:
If the price breaks above the resistance area, the next target lies around $2,800, which is the upper boundary of the ascending channel.
On the downside, if the resistance holds, a pullback toward the support of the channel around $2,560 to $2,480 is possible.

Engulfing Pattern at Support:
A bullish engulfing pattern at the double-bottom zone initiated the current rally, showing strong buying interest in this region.