Binary Doji in this Altcoin: Explode in the Next Weeks!

Binary Doji in this Altcoin: Explode in the Next Weeks!

The Dual Doji formation is forming on the Ethereum chart. According to analyst Yashu Gola, a sharp rise is on the cards in the coming weeks as this formation is accompanied by positive technical indicators. The leading altcoin is trading in the $1,800 region at the time of writing.

Strong support levels combined with doji candles

Ethereum (ETH) is preparing for a rally due to the “binary doji” formation on its chart. doji; It is a candlestick pattern that occurs when it opens and closes at the same level on hourly, daily, or weekly timeframes. From a technical point of view, the doji indicates that the market is dominated by indecision and the strength of the bears and bulls is balanced.

Thus, if the market is falling at the time the doji pattern appears, analysts will interpret this as weaker selling. Therefore, investors also consider Doji as a signal to close short positions or open long positions.

Meanwhile, the binary doji means that traders’ trends are conflicting and the price could break out in either direction. The ETH/USD pair was also forming a similar pattern on the weekly chart. Hence, it seems poised to make sharp moves that will set the trend in the coming weeks.

Ethereum’s strong support level, some technical indicators like the 200 EMA (blue wave) near $1,625 indicate the bullish momentum. The 1,500-1,700 ETH band, which limits bearish moves from February to July 2021, is also acting as a solid support. All of these indicators signal that a rally is imminent, according to analysts.

50% Rally Possible for the Leading Altcoin?

If ETH price breaks to the upside as mentioned, the next target is the 0.5 Fibonacci retracement level. This level coincides with around $2,120.

This represents an increase of 20 percent. If this level is also breached, investors will aim for $2,700 by September 2022. This level, which crosses the 50-week EMA, represents a rise of around 50 percent. If the breakout occurs in the opposite direction, the downside target is $1,400.

Meanwhile, ETH price has been bullish today with the Ropsten testnet. As we have covered the details in this article. It looks like the whales are returning to Ethereum with ETH 2.0.

Altcoin whales back to Ethereum, switch to PoS effective

Ropsten testnet successfully completed. On the other hand, positive on-chain data, rising whale populations, and other positive factors are reflected in ETH price. The Ethereum team completed the Ropsten test on June 8th with no errors or difficulties during the merge phase. Glassnode data shows the value of ETH staked has surged to over $22.78 billion. At the same time, it shows that it is ready for the upcoming PoS transition.

According to on-chain analytics platform Santiment, the top 10 Ethereum whales are holding more ETH than the top 10 crypto exchanges despite the drop in Ethereum prices. Thus, this suggests that whale confidence in Ethereum (ETH) price may stabilize at current levels.

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