According to U.Today, Ethereum's four-hour chart is showing a reverse double top pattern, which traditionally indicates a bullish reversal. This pattern suggests that Ethereum (ETH) has faced resistance but has not significantly declined, maintaining a positive outlook. If buyers continue to gain momentum, a breakout above the resistance level could occur, as suggested by the second peak forming higher than the first.
The reverse double top pattern could be a sign that bullish sentiment is taking over bearish sentiment in the market. This shift is indicated by the double top itself and the formation of higher lows. Investors and traders may be considering buying now in anticipation of a breakout. The price of Ethereum is currently stable at $3,080 and has not fallen below key support levels. This stability often precedes a bullish move.
It's crucial to monitor the trading volume during the pattern's formation. If the volume increases along with the price, it confirms the strength of the bullish reversal. Given the current setup, Ethereum could see a significant price increase if it breaks above the $3,130 resistance level. If this level surpasses $3,200, then $3,300 could be the next target. However, traders should also be wary of false breakouts.