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