Ethereum’s ‘double doji’ pattern hints at ETH price hike of 50% by September

Ethereum’s native token, Ether (ETH), appears poised for a strong upward retracement in the coming weeks after painting a so-called “double doji” pattern, accompanied by a few bullish technical indicators.

Strong Ether Support Confluence Meets Dojis

To recap, a doji is a candlestick that forms when a financial instrument opens and closes around the same level over a specified time frame, be it hourly, daily, or weekly. From a technical perspective, the doji represents indecision in the market, meaning a balance of strength between bears and bulls.

So, if a market is trending down when the doji appears, traditional analysts consider it a sign of slowing selling momentum. As a result, traders can view the doji as a sign that their short positions exist or open new long positions in anticipation of a price reversal.

Meanwhile, a double doji shows a continued state of bias conflict between traders, which could cause prices to surge in either direction.

With ETH/USD forming a similar pattern on its weekly chart, the token looks poised to register strong trend-defining moves in the sessions ahead.

ETH/USD weekly price chart showing two consecutive Doji formations. Source: Trading View

Some of Ether’s techniques favor a decisive rebound move, starting with its 200-week exponential moving average (200-day EMA; the blue wave in the chart above) near $1,625, which served as a level. strong support in May 2022.

Then, Ether gets another concrete price floor in the $1,500-$1,700 range, which helped limit the token’s bearish attempts between February and July 2021. Coupled with a double doji, these technical indicators anticipate a rebound future prices.

A 50% ETH rally ahead?

If ETH price rebounds as described above, the next upside target is the 0.5 Fib line (near 2,120) of the Fibonacci retracement chart, taken from the $85 low to the 4 high. $300.

ETH/USD weekly price chart showing Fib support and resistance targets. Source: Trading View

This would mark a 20% upward move. Meanwhile, an extended move above the 0.5 Fib line could prompt traders to target the 0.382 Fib line near $2,700 as their next upside target, a level coinciding with the 50-week EMA. of ETH (the red wave), by the end of September 2022.

That would be a price hike of almost 50%.

Related: 3 Reasons Why Ethereum Price Is Pinned Below $2,000

Conversely, if the double doji pattern resolves into a breakout below the support range, it could push Ether towards $1,400. This level coincides with ETH’s 2018 high and was instrumental as support in February 2021, as shown below.

ETH/USD weekly price chart. Source: Trading View

A decisive breakdown below $1,400 then opens the door for the 0.786 Fib line near $1,000 as the next downside target.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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