Ethereum’s price action is showing signs of a possible trend change after the second-largest cryptocurrency by market cap bounced twice from the critical $1.5K support zone. This repeated defense has led analysts to identify a potential double bottom pattern on the daily chart—a bullish reversal structure that could spark a relief rally if confirmed.
The daily timeframe reveals that ETH remains trapped within a long-standing descending channel, with the 100-day and 200-day moving averages sloping lower near the $2.0K–$2.2K region. These long-term indicators underscore the bearish macro trend, but the recent price action suggests sellers are losing momentum. The RSI has recovered from oversold territory and is edging higher, signaling improving momentum without yet being overbought.
On the 4-hour chart, buyers have stepped in to prevent a lower low below $1.5K, pushing ETH toward the first overhead supply zone—a fair value gap around $1.7K. A decisive breakout above this level and a subsequent reclaim of the $1.8K resistance would confirm the double bottom formation, opening the path toward the $2.0K–$2.2K supply cluster. Conversely, a breakdown below $1.5K would invalidate the pattern and likely accelerate selling toward the 2022 lows near $1.2K.
Adding to the cautious optimism is the derivatives market, where options open interest for late December 2026 and other major expiries shows a dominance of call options over puts. This positioning suggests that despite the spot weakness, institutional and retail participants continue to bet on higher Ethereum prices in the medium to long term. If the double bottom triggers a rally, this sentiment could act as a tailwind.
For now, traders are watching the $1.8K level closely. A daily close above it with rising volume would provide the confirmation needed to shift the short-term bias. Until then, the bearish channel and moving average resistances remain intact, and any advance risks being a corrective bounce within the larger downtrend.
