What you should see on Ethereum’s chart when the cryptocurrency price rises higher

Ethereum ETH / USD rose above 10% at some point during Saturday’s 24-hour trading session, showing strength compared to Bitcoin BTC / USDwhich was up around 3%.

The sharp rise in Ethereum’s price may have been caused by a double-bottom pattern krypton printed recently.

A double bottom pattern is a reversal indicator that shows that a stock has fallen to a key support level, rebounded, tested back the level as support and is likely to return. It is possible that the stock can test the level again as support again, and create a triple bottom or even quadruple bottom pattern.

The formation is always identified after a security has fallen in price and is at the bottom of a downward trend, while a bearish double-peak pattern is always present in an uptrend. An increase in volume confirms that the double-bottom pattern was recognized, and the subsequent increasing volume may indicate that the stock will turn to an upward trend.

• Aggressive bullish traders can choose to take a position when the stock volume increases after the second retest of the support level. Conservative bullish traders can wait to take a position when the stock price has exceeded the level of the first rise (the highest before the second jump from the support level).
• Bearish traders can choose to open a short position if the stock declines at the level of the first return, or if the stock falls below the key support level where the double-bottom pattern was created.

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Ethereum Chart: Ethereum printed a double-bottom pattern on June 30 and July 13 just below the $ 1000 mark, and began responding positively to the July 14 pattern. The bullish price action in the stock market on Friday probably increased traders ‘and investors’ confidence that crypto could see. continued into next week.

• The increase took place at high volume, which indicates that there is currently a high degree of trading and investor interest. At the time of going to press, Ethereum’s volume measured at more than 200,000 on Coinbase, compared to a 10-day average of around 285,000, with many hours left before the 24-hour trading session is over.
• Bullish traders will want to see Ethereum eventually fall lower to print a higher low, which will confirm that a new trend is beginning. The crypto can print an inside bar during Sunday’s trading session to consolidate Saturday’s bullish movement higher, and a break upward from the pattern will give traders who are not already in a position a solid entry point.
• Ethereum trades above the eight-day and 21-day exponential moving averages (EMA) and the eight-day EMA begins to cross over the 21-day, which is bullish. In the coming days, traders will want to see Ethereum regain the 50-day simple moving average as support, which may indicate that long-term sentiment has become bullish.
• Ethereum has resistance above at $ 1,421.80 and $ 1,717.41 and support below at $ 1,245 and $ 1,081.

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