Ethereum Double Bottom Pattern
The concept of a double bottom pattern gained attention on June 18, 2024, suggesting a potential shift in Ethereum's trajectory. This pattern indicates a possible reversal of the bearish market trend towards a bullish one, amid the current harsh market corrections. Meanwhile, there are intriguing dynamics surrounding the Shiba Inu (SHIB) burn and the ongoing referral system of Furrever Token (FURR).
What is the Ethereum Double Bottom Pattern?
The double bottom pattern is a graphical representation in technical analysis indicating a potential trend reversal from bearish (downward) to bullish (upward). This pattern materializes when an asset price drops to a specific level, rebounds, drops again to the same level, and finally rises. The pattern resembles the letter 'W.' When the price successfully surpasses the first rebound peak after reaching the second lowest point, the double bottom pattern is confirmed. This confirmation is often followed by further price increases, signifying the discovery of a strong support level where buyers start dominating the market, hinting at a potential reversal towards an upward trend.
In the context of Ethereum crypto, Ethereum (ETH) recently retested a crucial support level, hinting at the formation of a double bottom pattern. This technical pattern is commonly perceived as a bullish reversal signal, indicating that the asset has found a strong support level after a declining trend and is likely to rebound. The significance of the Ethereum double bottom formation lies in its potential to reverse the recent bearish trend. As ETH retested the $3,500 support level, traders and investors vigilantly monitor this pattern. In moments when Ethereum traded below $3,550 and the 100-hour Simple Moving Average, it seemed poised to form a double bottom pattern and rise towards the $3,700 resistance. In case of a new increase, the price might encounter resistance around $3,460. As of Friday night at 10:32 PM WIB, the Ethereum price stood at $3,504. Failure to surpass the $3,500 resistance could lead to a continued price decline. The initial support on the downside is around $3,380, with the first major support at $3,350. Clear movements below the $3,350 support may drive the price towards $3,250, further declines could push it towards $3,120.
Confirmation of this double bottom scenario could pave the way for a significant price rally, reinstating confidence among market participants. Historically, Ethereum has exhibited resilience and the ability to bounce back from significant support levels. The double bottom pattern reinforces these characteristics, making it a crucial focal point for traders. Additionally, broader market sentiments, including ongoing SEC considerations towards the Ethereum Spot ETF, add speculation on ETH's future performance, with the recent conclusion of SEC's investigation into this blockchain.
Shiba Inu Burn Rate: Surge in Activity
In parallel with the potential Ethereum double bottom pattern scenario, the burn rate of Shiba Inu (SHIB) recently experienced a significant surge, reaching 5.569% in just a single day. The dramatic increase in the burn rate, where tokens are permanently removed from circulation, can have a substantial impact on the SHIB ecosystem. The primary aim of token burning is to reduce supply, potentially enhancing the value of the remaining tokens. For Shiba Inu, a high burn rate indicates coordinated efforts to increase token scarcity and boost the market value of the token.
This strategy aligns with broader objectives of many meme coins and community-based projects to create long-term value for their holders.
Furrever Token Referral System: What Is It?
Amid the crypto market volatility, encompassing discussions on the Ethereum double bottom pattern and the SHIB burn rate increase, there are parallel discussions on the Furrever Token (FURR) referral system, currently in the presale phase. The Furrever Token referral system allows users to earn a bonus of 10% FURR tokens from deposits made through their personal referral links. 'This feature not only encourages community growth but also provides opportunities for passive income. Users can share their referral links with friends, family, and social networks, creating a viral effect,' as stated on their website.
The total supply of this cat-themed meme coin is only 9 billion units, with 65% allocated to presale, 25% for decentralized exchanges to provide market liquidity, and 10% for the development team (locked for a year). So far, the presale has raised over $1.3 million and is currently in the 9th stage of a total of 10 phases.
