- Ethereum price is forming a rounding bottom pattern, hinting at a 31% breakout.
- ETH needs to produce a decisive close above its all-time high at $4,387 to confirm an uptrend’s start.
- A breakdown of the $3,746 support level will invalidate the technical formation’s bullish thesis.
Ethereum price has breached a crucial level, indicating the start of a run-up to new all-time highs. However, ETH is consolidating, gathering steam for the next leg that propels it higher.
Etheruem price to restart its rally
Ethereum price set up multiple lower lows between September 3 and September 24. However, what followed next was a series of higher lows. This price action resembles a rounding bottom pattern, which forecasts a 31% ascent to $5,245, determined by adding the depth of the rounding bottom to the breakout point at $3,989.
So far, ETH has breached this barrier and has rallied 6% to where it currently consolidates. While theoretically the uptrend has already begun, a potential spike in buying pressure needs to push Etheruem price past its all-time high at $4,387. This move will confirm that the buyers are in control and propel ETH to the 161.8% trend-based Fibonacci extension level at $4,849. Beyond this point, the theoretical target at $5,245, aka a new all-time high, awaits Ether.
In some cases, Etheruem price might overextend and reach the subsequent level at $5,765, constituting a 35% advance from the current position.
ETH/USDT 6-hour chart
On the other hand, if Ethereum price breaches below the $3,989 support barrier, it will indicate weakness among buyers and suggest that a downtrend might continue. However, a breakdown of the $3,746 will invalidate the rounding bottom pattern’s bullish thesis. In such a case, ETH might head toward $3,615.
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