The eerie deja vu scenario can see Ethereum 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.
This shows a fractal indicator from 2017, consisting of at least four technical patterns that were instrumental in pushing the 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 Ethereum fractal, explained
In detail, the four technical indicators are Stochastic RSI, Relative Strength Index (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 in 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, 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 the 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, the Ethereum token surged by another 500%, closing above $1,200 in Jan. 2018. It coincided with 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 support/resistance level.
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Later, in November 2017, the Stochastic RSI flipped bullish, with its %Okay line (the blue one), which compares an asset’s lowest low and the best excessive to outline a worth vary, crossing above the %D line (the saffron line), which is a transferring common of %Okay. Meanwhile, the Stochastic RSI studying was above 20 on the time of flip, which boosted Ether’s bullish continuation hopes.
Later, the Ethereum token surged by one other 500%, closing above $1,200 in Jan 2018. It coincided with RSI forming a double high, as proven in the chart above. The whole bottom-to-top occurred inside an ascending channel vary, with its 23.6% Fibonacci retracement stage serving as assist/resistance stage.
Ether almost mirrors the fractal movements of 2017 as it heads into the final quarter of 2021, albeit out of order.
In detail, the Ethereum token rose 3,400% to over $ 4,300, sixteen months after painting a bullish cross of the stochastic RSI (when its% K line crossed the% D line). Meanwhile, the huge bullish 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).
In detail, the four technical indicators are Stochastic RSI, Relative Strength Index (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 in the next six months.