The bid for Ethereum’s native token Ether (ETH) could rise to $ 13,000 in the next two months if history repeats itself.
That shows that a 2017 fractal indicator made up of at least four technical patterns helped drive ETH price up more than 7,000%. The same bullish indicators have also surfaced again in 2021 as Ether trades above $ 3,350 after gaining more than 360% since the start of the year.
Fractal Ethereum 2017, explained
The four technical indicators are in particular the Stochastic RSI, the Relative Strength Index (RSI), the Bullish Hammer and the Fibonacci Retracement. It started with the bullish hammer appearing on Ether’s monthly chart in December 2017, followed by a 7,000% rally over the next six months.
The massive rally led by Hammer pushed Ether’s monthly RSI above 94, an extremely buying zone. As a result, the cryptocurrency began a sideways consolidation to neutralize its over-optimistic sentiment. RSI started correcting downwards.
In parallel, Ether’s monthly stochastic RSI, which compares its closing price with a price range over a certain period of time, also began to correct downwards after the cryptocurrency was identified as overbought (indices above 80 are considered overbought and below 20 are considered oversold). .
Then, in November 2017, the stochastic RSI turned bullish, with the% K line (in blue) comparing the lows and highs of an asset to determine price ranges and excesses% K. Meanwhile, at the time of the flip, the stochastic RSI was above 20, fueling Ether’s hopes for another uptrend.
After that, the Ethereum token rebounded another 500% and closed above $ 1,200 in January 2018. This coincided with the formation of a double top of the RSI, as shown in the graph above. All of the upside was within an ascending channel range with the 23.6% Fibonacci retracement level acting as support / resistance.
The previous fractal repetition in 2021
Ether roughly mirrors the movements of the 2017 fractal as it moves into the final quarter of 2021, albeit with no orders.
In particular, the Ethereum token rose 3,400% to over $ 4,300 sixteen months after pulling a bullish RSI stochastic crossover (when its% K line rose above the% D line). Meanwhile, the massive upside move – once again – has pushed Ether’s monthly RSI into its overbought territory.
This was followed by a period of consolidation, with Ether creating a bullish hammer in July 2021, suggesting that the sellers had bottomed in price.
Jaydee_757, the analyst who first discovered the Ethereum fractal, has highlighted the hammer’s potential to drive ether prices high, with the main target being near the 2,618 Fib line (around $ 13,000).
Related: 3 Factors That Could cause Ethereum Price to rise 100% in Q4
The bullish analogy also orientates itself around a potential bullish crossover of the stochastic RSI and a double RSI line waiting to appear on Ether’s monthly chart in the “next few months”, as mentioned above.