The price of Ethereum went through a three-week high on Monday where it was triggered by similar gains in the market of Bitcoin. This comes in the middle of rumors about the foray of Amazon into the market of cryptocurrency.
There have been rumors about a job posting from the retail company that it was looking for an executive that would help the company build its blockchain strategy as well as a digital currency. This has led to intense speculations from global media reports where insider sources have stated that the retail company could start accepting Bitcoin as payment.
As of now, Ethereum has a 30-day correlation with Bitcoin at 88% and recently surged with the help of the crypto integration rumor by Amazon. Monday saw the exchange rate of ETH/USD surging to an intraday high of $2,390 which was the cryptocurrency’s highest price since the 8th of July. By 12.20 GMT, the pair had increased by 6.7%.
Nonetheless, when measured from the earlier bottom of $1,720 on Tuesday, the rebound for net upside came to a standstill at 38.94%. The retracement does look strikingly similar to the bullish price action that took place between the 22nd of June and the 7th of July.
The Bullish Setup Of Ethereum
Double bottoms have usually been seen as bullish trend reversal patterns for they consist of almost two troughs around the same level. As it works out, the price of Ethereum or any other cryptocurrency simply flips the neckline resistance as support and subsequently rallies far higher than the height of the maximum pattern.
Ethereum does fit into the pattern seamlessly. The cryptocurrency has already constructed a couple of consecutive bottom levels at a price of around $1,700. At the same time, the neckline resistance for the cryptocurrency stands near $2,390. This implies that the maximum height of the pattern should be around $690.