Bitcoin (BTC) and altcoins had a good start to 2026 and are experiencing a cautious recovery.
Bitcoin surged above $94,000, while Ethereum (ETH) climbed above $3,300.
As the recovery continues for ETH and altcoins, analysts have noted the formation of a double bottom pattern on the Ethereum daily chart, increasing the likelihood of a technical rebound.
Technically, a double bottom formation signals that prices are about to reverse from a downtrend to an uptrend.
Market analysts noted that the formation has been developing since the fourth quarter of last year, and demand in a key support zone has successfully defended this level on numerous occasions. They stated that if this formation is completed, it would signal a potential rebound towards $3,900.
“ETH has been showing a tendency to form a double bottom 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 pointed out that whether Ethereum’s 200-day exponential moving average (EMA) recovers is a key variable. They noted that ETH has failed in both attempts to break above the 200-day EMA since its decline began last November, with each rejection leading to an ongoing downtrend.
At this point, if Ethereum closes above the 200-day EMA on the daily chart, it could be interpreted as a significant signal that the long-term trend resistance line has been broken. In this case, it is stated that ETH is more likely to enter a medium- to long-term recovery phase.
*This is not investment advice.
