Ethereum: Bullish Reversal Confirmed !!!Ethereum (ETH) has been in a downtrend since November 2021. The price has been respecting the descending trendline and making lower highs and lower lows. However, the price recently broke out above the trendline and formed a three drives pattern.
The descending trendline:
The descending trendline is a bearish pattern that is characterized by two converging trendlines, one connecting lower highs and the other connecting higher lows. The price typically breaks down below the lower trendline, signaling a continuation of the downtrend.
The three drives pattern:
The three drives pattern is a bullish reversal pattern that is characterized by three consecutive rallies, with each rally being higher than the previous one. The pattern is confirmed when the price breaks out above the resistance level.
The breakout:
The price broke out above the descending trendline on March 14, 2023. This breakout was confirmed by the three drives pattern.
The retest:
The price has since retested the broken trendline and held. This retest confirms the bullish reversal and suggests that the price is likely to continue to rise in the near future.
Bullish targets:
The first bullish target is the $3,500 level, which is the top of the descending trendline. Further upside could see the price reach $4,000 or even higher.
Conclusion:
The Ethereum chart shows a bullish pattern. The price has broken out of a descending trendline and formed a three drives pattern. This suggests that the price is likely to continue to rise in the near future. Investors should always do their own research before investing in any cryptocurrency.
