Ethereum Market Update: ETH/USD surge could grind to a halt, double-top pattern spotted

By February 7, 2020Ethereum
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  • Ethereum bulls refuse to give up on their quest to conquer the resistance at $220.
  • A double-top pattern suggests that if the resistance is not broken, a reversal may be imminent.

Ethereum price has grown almost 50% since the lows traded in December last year. The upward momentum has been consistent. However, the trend has also withstood several setbacks and stalling at various resistance zones such as $140, $160 and $180.

The gains in February have been coming fast t for Ethereum especially following the break above $180. The bulls pushed ETH initially above $200 before tackling the sellers at $210. In the last 12 hours, Ethereum recovered above $220 but formed a high at $220.51 before adjusting to the current level ($218).

Ethereum reversal seems imminent

The 4-hour chart shows Ether having stalled at the new 2020 high (very close to the highs traded in September). If the bulls lack enough power to pull Ethereum above the resistance in this zone, the formation of a double-top pattern could mark the end of the bull run. A retracement would follow, possibly to find lower support at $210 or $200. This will allow more buyers to enter the market at a lower price and push the crypto towards $230 and $250 respectively.

At the time of writing, the RSI is highly overbought, hinting that a reversal is possible in the near term. However, for now, the bulls have most of the control and could hold on to the 2% gains on the day a while longer.

ETH/USD 4-hour chart

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A double-top pattern suggests that if the resistance is not broken, a reversal […]

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