- Ethereum rejection at $1,700 leads to losses under $1,500.
A double-bottom pattern brings hints at a potential recovery toward $1,800.
If support at $1,400 fails to hold, Ether could drop to $1,200.
Ethereum could not continue with the upswing following the breakdown to $1,400 due to the selling pressure at $1,700. The bulls abandoned the mission to hit $2,000 again, instead, retreating to the sidelines. The correction from $1,700 has been unstoppable to the extent of revisiting areas below $1,500. However, a possible technical pattern suggests that recovery is on the cards.
At the time of writing, Ethereum is doddering at $1,490 after losing the support at $1,500. The 4-hour chart highlights the possibility of a double-bottom pattern forming in the near-term. This is a bullish reversal pattern suggesting that the downtrend is weakening, and bulls are getting ready to control the price.
If the pattern confirms, Ethereum will start the recovery journey afresh. This time bulls must focus on breaking the critical hurdle at $1,640, as highlighted by the 200 Simple Moving Average on the 4-hour hour chart. Further up, a confluence formed by the 50 SMA and the 100 SMA will delay the recovery, but once broken, Ether may rally to $2,000.
The Relative Strength Index (RSI) on the 4-hour chart highlights a bullish picture after making a shallow bounce above the oversold region. A movement toward the average line will indicate a growing bullish grip, adding credence to the uptrend.
It is worth noting that if the double-bottom pattern fails to confirm, Ethereum is likely to continue with the downtrend toward $1,200. Here, a higher concentration of buyers will boost it upwards. More investors are likely to enter the market because of the lower price.
Ethereum intraday levels
Spot rate: $1,493
Relative change: 10
Percentage change: 0.6%
Trend: Bearish
Volatility: Growing
