The price of Ethereum under $1,800 warns of a potential correction to $1,500, while optimistic traders hope for a double bottom reversal.

As Bitcoin crashes to $81,000, Ethereum has breached the crucial $1,800 support. Having created a 24-hour low at $1,754, Ethereum is currently trading at $1,809. 

However, despite the increased bearish influence, the possibility of a double-bottom reversal arises at a crucial support. Will Ethereum manage to regain bullish momentum? 

Ethereum Analysis Hints At Double Bottom Reversal

In the daily chart, the Ethereum price trend showcases a streak of six consecutive bearish candles. These account for a pullback of nearly 12%. Furthermore, the declining trend retests the $1,762 S1 pivot support level with lower price rejection. 

Ethereum’s price action near this crucial support level indicates bullish dominance, hinting at the formation of a Doji candle. This suggests a potential double-bottom reversal, as Ethereum bounced back from the S1 pivot support level in early March.

The daily RSI reveals a bullish divergence, supporting the possibility of a double-bottom reversal. The neckline of the double-bottom pattern is near the $2,100 resistance level.

However, for the double-bottom reversal to be completed, Ethereum must break above the local resistance trendline, which has been limiting bullish growth within the broader falling channel pattern.

Ethereum Whales Face Liquidation Risk Worth $229M

Amid the declining Ethereum prices, crypto whales are at risk of significant liquidations. According to a recent tweet by LookOnChain, two whales on Maker DAO are holding Ethereum close to liquidation levels.

These whales hold 125,603 ETH, worth $229 million. The liquidation prices are set at $1,787 and $1,701. As the downtrend accelerates, large-scale liquidations could fuel an even steeper correction in Ethereum’s price.

Optimistic Analysts Hope for a Bounce Back

Despite the short-term selling pressure, crypto analyst Jonathan Carter points to the possibility of a bullish rebound. According to Carter, Ethereum is holding the lower boundary of a descending triangle pattern.

With a potential price rejection near the $1,800 mark, a bounce could challenge the $1,950 and $2,080 horizontal resistance levels. Carter extends his price targets to $2,230 and $2,320.

Conclusion

The short-term price rejection from the 24-hour low suggests a potential bounce back. However, the looming risk of whale liquidations, worth $229 million, makes the situation precarious.

A close below the S1 pivot support at $1,762 would likely extend the correction phase, with a retest of the lower boundary of the falling channel pattern near $1,500.

On the other hand, a successful double-bottom reversal breaking the local resistance trendline could challenge the falling channel boundary near $2,300.