The eerie deja vu scenario can see Ether hit $13,000 within six months if history repeats.
Bids for Ethereum’s native token, Ether (ETH), could rise to $13,000 in the next two months if history repeats itself.
Ether saw a fractal indicator from 2017, consisting of at least four technical patterns that were instrumental in pushing ETH price up by over 7,000%. The same set of bullish indicators have flashed once again in 2021 as Ether trades above $3,350 after rallying over 360% year-to-date.
The 2017 Ether fractal, explained
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In detail, the four technical indicators are the relative strength index (RSI), stochastic RSI, bullish hammer and a Fibonacci retracement level. It started with the bullish hammer’s occurrence on Ether’s monthly chart in December 2017, followed by a 7,000% price rally over the next six months.
The hammer-led massive upside move pushed Ether’s monthly RSI to over 94, an extremely overbought zone. As a result, the cryptocurrency started consolidating sideways to neutralize its excessively bullish sentiments, and thus, the RSI started correcting lower.
In parallel, Ether’s monthly stochastic RSI indicator, which compares its closing price with the price range over a given period, also started correcting lower after identifying the cryptocurrency as overbought (a reading above 80 is considered excessively bought and below 20 is considered excessively sold).
Later, in November 2017, the stochastic RSI flipped bullish, with its %K line (the blue one) — which compares an asset’s lowest low and highest high to define a price range — crossing above the %D line (the saffron line) — which is a moving average of %K. Meanwhile, the stochastic RSI reading was above 20 at the time of flip, which boosted Ether’s bullish continuation hopes.
Later, Ether surged by another 500%, closing above $1,200 in January 2018. It coincided with the RSI, forming a double top, as shown in the chart above. The entire bottom-to-top took place inside an ascending channel range, with its 23.6% Fibonacci retracement level serving as a support/resistance level.
The 2021 fractal repeat so far
Ether is almost mirroring the moves from the 2017 fractal as it heads into the final quarter of 2021, albeit without order.
In detail, the Ethereum token rallied by 3,400% to over $4,300, 16 months after painting a bullish stochastic RSI cross (when its a %K line surged above the %D line). Meanwhile, the huge upside move — again — pushed Ether’s monthly RSI into its overbought zone.
A consolidation period followed that saw Ether making a bullish hammer in July 2021, suggesting sellers had formed a price bottom.
Jaydee_757, the pseudonymous analyst who first spotted the Ether fractal, highlighted the hammer’s potential to send Ether price flying, with a primary upside target sitting near the 2.618 Fib line (at around $13,000).
Related: 3 factors that can send Ethereum price to 100% gains in Q4
The bullish analogy also took cues from a potential stochastic RSI bullish cross and a double top RSI, waiting to appear on Ether’s monthly chart in the next “few months,” similar to the one that coincided with the 500% price rally in 2018, as mentioned above.
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Source: cointelegraph.com