Ethereum is showing signs of a potential near-term bottom reversal on its daily chart. The cryptocurrency appears to have formed a classic double bottom pattern near the $1,510 support level. Just two days ago, ETH broke above the $1,842 resistance after a period of consolidation. At press time, the coin was trading at around $1,883, a gain of 6.88% over the past 24 hours.
According to veteran chartist Aksel Kibar, this technical setup projects an upside target of $2,163. This figure is calculated from the movement of the pattern from the double bottom to the neckline. Kibar had made a similar short-term bullish forecast just three days ago, suggesting continued momentum from the reversal.
Support for trendlines and fundamentals
Adding to this bullish scenario is a multi-month ascending trendline showing higher lows between February and May. This trajectory suggests continued buying by traders even as prices rise, which could reinforce the bullish push.
On a fundamental level, EthSystems – a spin-off of the Ethereum Foundation – was recently launched as an independent, for-profit research and engineering company. The move was greeted with optimism by the Ethereum community, as it signals the network’s commitment to bringing blockchain privacy to heavily regulated institutions.
Today’s colder-than-expected inflation data also encouraged investors to turn to crypto assets. Beyond retail interest, institutional accumulation continues. Bitmine Immersion Technologies now holds 5.77 million ETH tokens, representing approximately 4.8% of the circulating supply.
Key levels to watch
Traders should keep an eye on the $1,842-$1,850 range, which is double bottom neckline resistance. A decline below this level could invalidate the bullish setup. Additional resistance lies between $1,900 and $2,000, marking the highs reached between May and June just before the sharp decline.
If ETH manages to surpass these two zones with increasing trading volumes, this could open the door to the $2,163 target. However, caution is advised as the market remains volatile and trends can sometimes fail.
