Ethereum Price Forecast: ETH/USD Forming Double Top Pattern?
Key points for Ethereum price, ETH/USD and a possible double top pattern
- Ethereum price traded one again towards the $12.00 handle, but failed to gain traction above it against the US Dollar.
- It looks like ETH/USD is likely forming a double top pattern on the 4-hours chart, but we need a confirmation for it to be true.
- As long as the price is above the 100 simple moving average on the 4-hours chart, it remains in a bullish zone.
Ethereum Price Struggle to break $12.00
Ethereum price gave a lot of buying opportunities to the bulls, and they enjoyed nice gains on many occasions. Now can ETHUSD continue gaining?
The price recently moved closer to the $12.00 resistance area once again, but somehow sellers managed to protect an upside move above it once again. The current price action should be a concern for the bulls in the near term. Why?
There is a likely a double top pattern on the 4-hours chart around the all-important $12.00 levels. The price is currently correcting down. Can this be a correction or a change in the trend?
Well, it’s very hard to say that the price may move down, as there are many support levels on the way down. The neckline for the possible double top pattern on the 4-hours chart could be around the 100 simple moving average.
There is also a bullish trend line on the 4-hours chart of ETHUSD, which is moving along with the 100 MA. So, as long as the price is above it, there are chances of it gaining traction once again.
However, if there is a break below the 100 MA and the 50% Fib retracement level of the last leg from the $5.50 low to $12.00 high, then we can say that Ethereum price may start a larger move down.
So, watch carefully the highlighted trend line 100 MA support area if you are planning to buy ETH.
Support levels for ETHUSD - $9.80 and $8.50
Resistance levels for ETHUSD - $11.50 and $12.00