Ethereum Breakout Restricted by Market Inefficiency

The Ethereum market is currently trading within key zones of $2809.0 and $2116.0, marked by distinct multiple swing highs and lows. These zones are critical for identifying potential reversals and market sentiment.

On September 6th, the demand zone at $2116.0 underwent a second test, resulting in the formation of a **double bottom** on the daily chart—a bullish reversal pattern that often signifies a shift in market dynamics. This pattern suggests that buyers are stepping in to support the price at this level, indicating a potential for upward movement. Following this formation, the subsequent ascent has paused at $2700.0**, just below the swing high of $2809.0. However, a fair value gap in this region is a hurdle for further price appreciation, creating a point of contention for traders.

 

Ethereum Key Levels

Resistance Levels: $2809.0, $3400.0
Support Levels: $2200.0, $1755.0

What Are the Indicators Saying?

 

The Williams Percent Range indicator indicated an oversold market during the test of the demand level at $2200, contributing to the formation of the double bottom in September. Furthermore, the Smoothed Heikin Ashi candles have turned green, positioning themselves below the daily candles to signal upward momentum. However, a resumption of the bearish trend is anticipated, as the fair value gap continues to impede upward motion, while the Williams Percent Range suggests that the market is currently overbought.

 

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