The cost of Ether (ETH) jumped to a three-week high on Monday, triggered past similar gains in the Bitcoin (BTC) market that appeared in the wake of rumors nearly Amazon's foray into the cryptocurrency sector.

A chore posting from the retail giant showed that it is seeking an executive to build its "digital currency and blockchain strategy." Meanwhile, global media reports have been speculating, based on inside sources that Amazon would start accepting Bitcoin equally payments. Equally a result, the BTC/USD exchange rate surged to its half-dozen-calendar week high after the news.

Ether, whose 30-day correlation with Bitcoin stands at 88%, surged as well on Amazon's crypto integration rumor. On Monday, the ETH/USD substitution rate soared to an intraday loftier of $two,390, reaching its highest level since July 8. The pair was up more than 6.seven% as of 12:20 GMT.

Ether bottomed out twice in a row near $i,700 in recent sessions. Source: TradingView

However, measuring from its previous bottom of $i,720 on Tuesday, the net upside rebound came out to be 38.94%. The retracement looked strikingly like to the bullish price action between June 22 and July 7, wherein ETH/USD rebounded by more than than forty% later on bottoming out at $ane,700.

That said, Ether bottomed out twice near the $1,700 range before rebounding college past 38%–xl%. Analyst Jonny Moe spotted that mirrored retracements move and ruled them out as a double bottom pattern.

The bullish setup

In detail, double bottoms are bullish tendency reversal patterns, consisting of 2 troughs around the same level hanging by a neckline resistance. As it plays out, the price eventually flips the neckline resistance as support and rallies higher by every bit much as the maximum pattern'south height.

Ether fits the clarification. Information technology has formed two consecutive bottom levels at around $1,700. Meanwhile, its neckline resistance is near $2,390. Therefore, the maximum pattern's height is $690.

Ether'south double bottom setup envisions cost at or around $3,000. Source: TradingView

Should the ETH/USD rate interruption above the $2,390 neckline resistance, accompanied by a fasten in volume, the pair will be expected to extend its upside move by approximately $690. That would roughly take it toward $3,000 (with $2,948 serving as a psychological bullish target based on historical cost action).

Confluence

Another technical pattern in play outdoes the double lesser setup'southward upside target by predicting Ether prices at almost $3,250.

Related: Ethereum bounces but ETH cost in danger of turning $2.3K into new resistance

Dubbed as a falling wedge, the blueprint develops when the price trades lower within a range that begins wide but contracts during the downtrend. It eventually prompts the toll to break bullish while setting up its turn a profit target at a level situated typically above the wedge pinnacle (if measured from the breakout betoken).

Ethereum'south falling wedge setup. Source: TradingView

Then, it appears, the ETH/USD substitution rate is undergoing a bullish breakout confirmed by a high-volumed close above the wedge resistance trendline. The profit-taking target for the current setup is $1,208 above the breakout level, which puts the price en road to $iii,257.

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