Ethereum ‘double Doji’ pattern hints at a 50% ETH price rally by September

After painting a “double Doji” pattern with a few bullish technical indicators, Ethereum’s native token Ether (ETH) looks set to experience a sharp upward retracement over the next weeks.

Dojis meet another strong support confluence

A Doji is a candlestick which forms when a financial instrument opens or closes at the same level within a given time frame, whether it be hourly, daily, or weekly. Technically, a Doji is a symbol of indecision in the market. It represents a balance between bulls and bears.

Traditional analysts see a Doji as a sign that a market is moving downwards and it is slowing down selling momentum. Dojis can be seen by traders as a signal to open new long positions, or to maintain their short positions in anticipation of a price decline.

A double Doji indicates that traders are still in bias conflict, which could lead to the price breaking out in one direction.

The ETH/USD chart shows a similar pattern, so the token is ready to make strong trend-defining moves during the next sessions.

Weekly price chart for Ethereum/USD featuring two Doji formations. Source: TradingView

Ether’s technicals favor a decisive rebound, starting with its 200-week exponential moving mean (200-day EMA, the blue wave in this chart above), which is near $1,625, and has served as a strong support level for May 2022.

Next, Ether will receive a concrete price floor in $1,500-$1,700, which helped to end the token’s bearish efforts between February 2021 and July 2021. These technical indicators, together with the double Doji, anticipate a price rebound.

Are you looking for 50% more ETH rallies?

If ETH prices rebound as described above then the next bullish target would be the 0.5 Fib (near 2,120), of the Fibonacci retracement chart, which is drawn from the $85 swing low to the $4,000.00 swing high.

Weekly price chart for Ethereum/USD with Fib support and resistance targets Source: TradingView

This would be a 20% move up. A prolonged move above the 0.5 Fib level could lead traders to target the 0.382 Fib near $2,700 as their next upside goal. This is a level that coincides with ETH’s 50-week EMA (the Red Wave) by September 2022.

This would result in a price rise of nearly half a percent.

Related: Why Ethereum prices are below $2,000

If the double Doji pattern is resolved in a breakdown below support range, Ether could reach $1,400. This level corresponds to ETH’s 2018 high and was used as a support in February 2021 as shown below.

Weekly chart of the ETH/USD exchange rate. Source: TradingView

If the decisive breakeven point is below $1,400, then the door opens to the 0.786 Fib line at $1,000 as the next downside target.

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