The price of the original Ethereum Ether (ETH) token could rise to $13,000 over the next two months if history repeats itself.
This is evidenced by the 2017 fractal indicator, which consists of at least four technical patterns that helped push the price of ETH over 7000%. The same group of bullish indicators broke out again in 2021, with Ether trading above $3,350 after accumulating more than 360% this year.
Ethereum Fractal 2017 explained
In detail, the four technical indicators are the Stochastic RSI, the Relative Strength Index (RSI), the Bullish Hammer and the Fibonacci Retracement level. It all started with the appearance of a bullish hammer on the monthly Ether chart in December 2017, followed by a 7000% rise in prices over the next six months.
The massive bullish move caused by the hammer caused the RSI of Ether to rise above 94, the overbought zone. As a result, the cryptocurrency started to consolidate sideways to neutralize its excessive bullish sentiment, and thus the RSI started a bearish correction.
In parallel, the monthly Stochastic RSI for Ether, which compares the closing price with the price range for a certain period, began adjusting downward after determining the cryptocurrency as overbought (a value above 80 is considered overbought, and below it) 20 Overbought).
Ethereum 2017 Fractals Indicator Source: TradingView.com, Jaydee_757
Later, in November 2017, the RSI changed its bullish character with the %K line (blue), which compares the lowest low and the highest high of the asset to determine the price range beyond the %D line (the saffron line), which is a %K moving average. Same, the stochastic RSI value was above 20 during the reversal, which supported the continuation of the bullish run for Ether.
Subsequently, the Ethereum coin surged another 500% and closed above $1,200 in January 2018. It coincided with the RSI and formed a double top as shown in the above chart. All the way from the bottom to the top it was within the area of the ascending channel with the 23.6% Fibonacci retracement level, which acts as a support/resistance level.
Fractals in 2021 so far
Ether almost mirrors the fractal’s movements since 2017 when it enters the last quarter of 2021, albeit without orders.
Specifically, the Ethereum token rose 3.400% to over $4,300 sixteen months after drawing a bullish RSI cross (when the %K line rose above the %D line). Meanwhile, a significant rally – once again – pushed Ether’s monthly RSI into the overbought territory.
Ethereum Fractals Index 2017 vs 2021. Source: TradingView.com, Jaydee_757
This was followed by a period of consolidation when Ether hit the hammer of the bull in July 2021, indicating that sellers had formed a price base.
Jaydee_757, the pseudonym analyst who first discovered the Ethereum crack, highlighted the hammer’s ability to make the price of Ether rise, with a primary target near the 2618 Fibonacci line (around $13,000).
Related: 3 Factors That Could Send Ethereum Bonus 100% Profit in Q4
The bullish measurement was also based on a potential stochastic RSI – a bullish crossover and the RSI is expected to show two peaks on the monthly chart of Ether over the next “many months”, similar to the one that coincided with a 500% rally in 2018. As mentioned above .
