Double bottom or head and shoulders? Dogecoin (DOGE) price rises 5%, Ethereum (ETH) at crucial market levels

As Ethereum attempts to break out of its ongoing downtrend, it is at a crucial point in the market. Recently, ETH has broken through a number of notable resistance levels, indicating strength and positive sentiment among traders.

With a current price of around $2,624, Ethereum is attempting to continue growing after breaking through significant barriers. However, a noticeably increased selling pressure makes it more difficult to maintain this development. Ethereum is currently facing a tipping point due to selling pressure.

For the asset to escape the bearish pattern that has characterized most of its recent price movements, it will need to hold its support level around $2,550. The next target where more resistance is likely to be found is likely around $2,780 for ETH if it can break the current resistance zone. However, if selling pressure continues, Ethereum could fall back below the recently reached support level, which could lead to another wave of lower prices.

The Relative Strength Index (RSI) is also nearing a critical level, suggesting that traders are watching closely to see whether Ethereum will continue its bullish recovery or experience another correction. With the market currently at a crossroads, the future of Ethereum is still unclear. ETH’s short-term price movement will likely be shaped by the decisions traders make at that time.

It is important to keep a close eye on this critical market level because while a breakout from the downtrend could result in significant gains for Ethereum, failure could signal a return to more difficult price action in the near future.

Dogecoin pushed forward

With a notable 5% price increase, Dogecoin has now crossed the crucial 100 EMA level on the daily chart. As it approaches the 200 EMA, traders and investors are becoming more bullish on this uptrend. A significant upside move and the possibility of a long-term trend reversal could be indicated if Dogecoin is able to move above the 200 EMA.

The potential for a golden cross formation, where the short-term moving average crosses the long-term moving average, is the crucial element of this rally. Confidence in Dogecoin's future price movement could be reinforced by the golden cross, which is often viewed as a reliable sign of a bull market.

Related

As Dogecoin approaches this crucial technical level, traders are watching closely for a breakout that could trigger a long-term uptrend. However, it is crucial to consider the overall sentiment of the market.

Dogecoin continues to face strong resistance even as it has demonstrated its resilience over the past few days. The 200 EMA or $0.12 level is the next key resistance level.

Should there be a successful break above this level, Dogecoin could see further gains, which would attract more buyers and confirm the trend reversal. However, a pullback could occur if the 200 EMA is not broken, with support levels near $0.1000. Recent gains could run into trouble as selling pressure increases and Dogecoin could enter a consolidation phase again.

Bitcoin is drawing an important pattern

Currently, Bitcoin is exhibiting chart patterns that could indicate a significant move in one direction or the other. The two possible patterns that traders believe Bitcoin is forming – a double bottom and a head and shoulders pattern – have very different consequences for BTC's future price movement.

Related

When price hits a low, recovers, and then retests that low before moving higher, a double bottom, a bullish reversal pattern, forms. As for Bitcoin, the market appears to be recovering from a recent low around $61,000, which represents a significant support level that could confirm this pattern.

If the double bottom persists, Bitcoin could once again attempt to break the $65,000 resistance level, which could lead to a significant rally towards higher prices. However, it is impossible to rule out the possibility of a head and shoulders pattern. This bearish reversal pattern that follows an uptrend suggests an impending price decline.

As for Bitcoin, the recent high of around $64,800 can be viewed as the head and the previous highs as the shoulders. Bitcoin could see an extended bearish phase if it begins to decline and breaks through significant support levels such as $61,000. This would confirm the head and shoulders pattern.

Both trends are being carefully watched and Bitcoin's performance in the coming days will determine how valid they are. A successful breakout above $65,000 would result in bullish momentum that would refute the head and shoulders principle and confirm the double bottom. The completion of the head and shoulders pattern could indicate that BTC is at the end, which would drive the price lower if it is unable to sustain above $61,000.