Ethereum’s march to the all-time high of 2683.65 on Tuesday was spurred by talks of the European Investment Bank launching a digital bond sale on the Ethereum blockchain network. The ETH/USD pair surged 3.49% on Tuesday, adding to Monday’s 9.17% spike after Bloomberg cited unnamed sources as declaring the EIB’s plans to launch a 2-year euro digital bond worth 100 million euros. Some major banks such as Banco Santander and Goldman Sachs are leading the initiative.
Technical Outlook for Ethereum
Following the completion of the measured move from the bull flag on the daily chart at 2550, the correction and bounce on the 2143.44 support has produced a double bottom pattern with the neckline at 2400. The surge to the all-time high on Tuesday has broken the neckline with the required penetration filter, opening the door for a push to the 2850 price mark (227.2% Fibonacci extension from 11 December to 10 January 2021. This run is expected to complete the double bottom’s measured move.
On the other hand, a rejection at current levels (200% Fibonacci extension) could set up a corrective move to retest the 2400 neckline, now acting as a support. If this level gives way, then 2143.44 becomes the next retest target. A bounce here sets up a chance at a triple bottom, otherwise, a breakdown of 2143.44 allows for a cascading drop to 2000. The 13 March high/7 April low at 1935.79 becomes the next downside target if the decline continues.