Ethereum Could Stage Strong Rally As Double Bottom Pattern Emerges

Ethereum nosedived below the $202 support zone against the US Dollar. ETH price revisited the $192 support and it seems like there is a key double bottom pattern forming near $192.

Ethereum declined more than 5% and it tested the main $192 support zone.
It seems like there is a double pattern forming near the $191-$192 zone.
There is a key bearish trend line forming with resistance near $202 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could either fail near $202 or start a major upward move towards the $210 level.

Ethereum Price Could Recover Sharply
The past few sessions saw a sharp rise in selling on Ethereum and bitcoin against the US Dollar. BTC price dropped below the $9,250 support level and ETH price nosedived below the $200 handle to move into a bearish zone.
The recent decline was such that ether even broke the $195 level and settled below the 100 hourly simple moving average. However, the main $191-$192 support zone acted as a strong buy zone.
A low is formed near the $191 level and the price is currently rising. It seems like there is a double pattern forming near the $191-$192 zone. The price is now trading above the 23.6% Fib retracement level of the recent drop from the $215 swing high to $192 swing low.
On the upside, there is a key hurdle forming near $202 and $204. There is also a key bearish trend line forming with resistance near $202 on the hourly chart of ETH/USD.
Ethereum Price
The trend line is close to the 50% Fib retracement level of the recent drop from the $215 swing high to $192 swing low. A successful break above the trend line and the $204 level is needed to confirm a double bottom pattern.
In the mentioned bullish case, there are high chances of a sustained upward move towards the $210 and $212 levels in the coming sessions.
Another Failure?
If Ethereum fails to clear the $202 and $204 resistance levels, there could be another decline. An initial support on the downside is seen near the $195 level.
The main supports are near the $192 and $191 levels. If the bulls fail to protect $191, the price is likely to decline sharply towards $182 and $180.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now recovering nicely towards the 50 level.
Major Support Level – $192
Major Resistance Level – $204
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