Ethereum’s native token, Ether (ETH), looks poised to undergo a sharp upside retracement in the coming weeks after painting a so-called “double Doji” pattern, accompanied by a few bullish technical indicators.
Ether strong support confluence meets Dojis
To recap, a Doji is a candlestick that forms when a financial instrument opens and closes around the same level on a specified timeframe, be it hourly, daily or weekly. From a technical perspective, a Doji represents indecision in the market, meaning a balance of strength between bears and bulls.
So, if a market is trending downwards when a Doji appears, traditional analysts view it as a sign of slowing selling momentum. As a result, traders may look at a Doji as a sign to existing their short positions or open new long positions in anticipation of a price reversal.
Meanwhile, a double Doji shows a continued state of bias conflict among traders, which could result in the price breaking out in either direction.
With ETH/USD forming a similar pattern on its weekly chart, the token looks ready to log strong trend-defining moves in the coming sessions.
Some of Ether’s technicals favor a decisive rebound move, beginning with its 200-week exponential moving average (200-day EMA; the blue wave in the chart above) near $1,625, which has served as a strong support level in May 2022.
Next, Ether gets another concrete price floor in the $1,500–$1,700 range, which was instrumental in capping the token’s bearish attempts between February and July 2021….