Ether (ETH) continues to trade just shy of the pivotal $2,000 level, keeping bulls on the edge of their seats. As the second-largest cryptocurrency by market cap tries to end the year on a high, there’s a bullish development that’s brewing underneath that could just help realize that.
ETH forms bullish double bottom
In an X post on Thursday, crypto analyst Gerla highlighted that ETH is “setting up something big” on the monthly chart. The analyst shared the following chart, saying that the cryptocurrency appears to be forming a macro double bottom.
For the uninitiated, a double bottom is a bullish chart pattern that forms when an asset tests a similar low price level twice – separated by a temporary rebound – suggesting selling pressure is weakening.
The pattern is typically confirmed when the price breaks above the intervening resistance – the neckline – signaling a potential trend reversal to the upside.
According to Gerla, ETH is currently trying to retest the breakout zone and a multi-year support level. The analyst added that the current formation is exactly the kind of structure that has marked major cycle lows before.
Concluding, Gerla said that if ETH maintains its current momentum, then a long-term target of $10,000 cannot be ruled out. At such a high price, ETH’s total market cap would be hovering around the $1 trillion mark.
Offering a contrasting take, crypto trader CryptoBullet said that ETH may face another rejection around the $1,900 region. The analyst said that ETH is currently trading within a channel after a weekly breakdown, raising the risk of falling all the way down to $1,190.
What do the fundamentals suggest?
Mining data suggests that downside for ETH may be limited. On Wednesday, The Coin Headlines reported that ETH miners’ transfers to Binance fell to baseline levels in July.
Similarly, ETH network is seeing an uptick in activity. On Friday, ETH tip fees climbed by 86 percent, painting a bullish outlook for the digital asset. Institutional demand for ETH remains elevated, with Bitmine scooping another 10,000 ETH on Monday.
