Ethereum Looks Ready To Bounce

Currently, Ethereum is trading at $224.03, and it is approaching the big round number $200. As you know, round numbers are psychologically important  to many traders. Not many people would say I want to buy it when it gets to $221.50. The majority would say I want to buy it when it hits $200.  Ethereum is still 10% away from $200, but keep in mind that a big round number tends to be a support level.

Besides psychology, Ethereum is trading at a very interesting price level right now. Below is a daily chart of Ethereum.

Ethereum has completed a AB=CD pattern, and it is now trading near D, a potential support level. This alone may be a good enough reason for some traders to buy , but let's check the 60-minute chart, too.

It looks like Ethereum is shaping a double bottom.  I want to buy if Ethereum takes out the minor resistance level A($230). The next breakout buy is when it takes out $260(B). The initial stop loss will be placed just below the support line (red line).