- Ethereum downtrend intentionally ignores the double-bottom reversal pattern.
- The prevailing remains bearish based on the negative technical picture.
The bearish wave across the crypto landscape on Thursday forced Ethereum through several vital levels. The consolidation above $170 became untenable with the jabs from the sellers increasing in intensity. Ether dived under $160 and extended towards $150. However, the price appears to be making a pit stop breather following the November low at $153.89.
The formation of a double-bottom pattern is interpreted as an almost certain reversal signal in classic technical analysis. However, its creation is going unnoticed by Ethereum as the price maintains a downtrend.
The Elliot Wave Oscillator is recording the sixth and most robust bearish session. In other words, a bullish reversal is around the corner. Besides, the Relative Strength Index (RSI) suggests that ETH is hugely oversold. A reversal above is, therefore, a formidable move that should follow the ongoing downtrend.
The 50 SMA on the 4-hour chart gap below the 100 SMA shows that the trend is in the hands of the sellers at the moment. To be on the safe side, buyers must pull the price above $160 and focus on levels towards $200.
ETH/USD 4-hour chart