- A bullish double bottom price action pattern has been observed on Ethereum within a 4-hour time frame.
- Short sellers do not expect ETH to reach the $3,250 level. If it does reach this level, short positions worth $1.65 billion will be liquidated.
The world’s second largest cryptocurrency Ethereum [ETH] has experienced a price increase of more than 5.5% after the recent update of spot Ethereum ETF (Exchange Traded Fund) in the United States.
After this ETF update, the overall crypto market turned green and investor sentiment changed positively.
With this impressive price momentum over the past 24 hours, ETH has just reached the 200 Exponential Moving Average (EMA). Furthermore, it is just one candle away from bullishness as it slightly lags the 200 EMA.
Ethereum bullish double bottom breakout
According to expert technical analysis, ETH looked bullish as it formed a double bottom price action pattern in a 4-hour time frame and at a neckline near the $3,085 level.
If it produces a breakout and the candle closes 4 hours above the neckline, there is a good chance that ETH will reach the $3,250 and $3,300 levels.
Source: TradingView
Moreover, this bullishness on the Ether chart also receives support from the Relative Strength Index (RSI), which is in the oversold territory and signals a possible recovery.
Despite this bullish double bottom pattern, ETH has been consolidating within a tight range between the $2,850 and $3,080 levels over the past five days.
However, this consolidation occurs at a key support level, and a breakout or collapse out of this consolidation zone could create significant price momentum in either direction.
Source: TradingView
Ether’s strong support level and liquidation area
However, ETH has reached this level more than four times since April 2024. Regardless of market conditions, ETH prices have consistently returned to the $3,250 or $3,670 level, as shown by historical data on a daily chart.
This time, traders expect a similar price increase from this level.
Following the ETF update, ETH’s Open Interest (OI) increased by more than 5.5%, indicating that investor and trader interest and confidence have returned, according to data from on-chain analytics firm CoinGlass.
Meanwhile, traders have liquidated a remarkable $59.94 million of their positions, with bulls liquidating $23.75 million in long positions and short sellers liquidating a remarkable $36.16 million in short positions, according to CoinGlass data.
If ETH reaches the $3,250 level in the coming days, nearly $165 billion in short positions will be liquidated. Over the past seven days, short sellers have been expecting ETH not to reach the $3,250 level, according to the latest liquidation data from CoinGlass.
Source: CoinGlass
Read Ethereum’s [ETH] Price forecast 2024-2025
At the time of writing, ETH was trading near the $3,075 level and has seen a price increase of 5.5% over the past 24 hours.
If we look at ETH’s performance over a longer period of time, it has lost almost 10% of its value. While ETH is down 16% in the last 30 days.