Bitcoin (BTC) and altcoins are off to a strong start heading into 2026, experiencing a cautious recovery.
Bitcoin has surpassed $94,000 and Ethereum (ETH) has surpassed $3,300.
As ETH and altcoins continue their recovery, analysts have noted the formation of a double bottom pattern on Ethereum’s daily chart, increasing the likelihood of a technical rebound.
Technically, the formation of a double bottom indicates that the price is about to reverse from a downtrend to an uptrend.
Market analysts pointed out that this formation has been developing since the fourth quarter of last year, and the demand in the main support zone has managed to defend this level many times. They say that once this formation completes, a rebound towards $3,900 is possible.
“ETH has been showing a tendency to form a double-dip pattern since the fourth quarter of last year.”
If the double bottom formation is completed, the technical target will be around $3,900. This increases the likelihood of a significant trend reversal beyond a short-term recovery. ”
However, analysts noted that the key variable is whether Ethereum’s 200-day exponential moving average (EMA) recovers. They pointed out that since ETH’s decline began last November, every attempt to break above the 200-day EMA has failed, with each rejection leading to a continued downtrend.
At this point, if Ethereum closes above the 200-day EMA on the daily chart, it could be interpreted as an important signal that the long-term trend resistance line has been broken. In this case, it is said that ETH is likely to enter a medium- to long-term recovery phase.
*This is not investment advice.
