The 2017 Ethereum fractal reappears with a 7,000% gain

Bids on Ethereum’s native Ether (ETH) token could rise to $ 13,000 in the next two months if history repeats itself.

This suggests a fractal indicator from 2017 that is off at least four technical samples that made a decisive contribution to driving the ETH price by more than 7,000%. The same bullish indicators have resurfaced in 2021 as Ether trades above $ 3,350 after rising more than 360% so far this year.

The 2017 Ethereum fractal explained

In detail are the four technical indicators the stochastic RSI, the relative strength index (RSI), the bullish hammer and a Fibonacci retracement level. It started with the bullish hammer appearing on Ether’s monthly chart in December 2017, followed by a 7,000% price rally over the next six months.

The 2017 Ethereum fractal reappears with a 7,000% gain
The 2017 Ethereum fractal reappears with a 7,000% gain

The massive upward move, led by a hammer, pushed Ether’s monthly RSI above 94, an extremely overbought zone. As a result, the cryptocurrency began to consolidate sideways to neutralize the overly bullish sentiment. The RSI started correcting downwards.

At the same time, Ether’s monthly stochastic RSI indicator that compares its closing price with the price range over a period of time, it also began to correct downwards after the cryptocurrency was identified as overbought (a value above 80 is considered oversold and below 20 is oversold).

Ethereum Fractal Indicator from 2017. Source: Jaydee_757 on TradingView.com.

Later, in November 2017, the Stochastic RSI went bullish with its% K line (blue color) comparing the lowest low of an asset and the highest high to define a price range, with the% D line (the color Saffron), which is a moving average of% K. Meanwhile, the stochastic RSI was above 20 at the time of reversal, fueling hopes for a bullish continuation of Ether.

Subsequently, the Ethereum network token rose another 500%, closing above $ 1,200 in January 2018. This coincided with the formation of a double top pattern on the RSI, as shown in the graph above. All of the move took place within an ascending channel area with the 23.6% Fibonacci retracement level serving as the support / resistance level.

Fractal 2021 repeats history so far

Ether pretty much mimics the fractal moves of 2017 and goes into the final quarter of 2021, if not okay.

In summary, the Ethereum network token rose 3,400% to over $ 4,300 sixteen months after it drew a bullish cross on the stochastic RSI (when its% K line rose above the% D line). Meanwhile, the huge upside pushed Ether’s monthly RSI (again) into its overbought zone.

Ethereum fractal of 2017 compared to 2021. Source: Jaydee_757 on TradingView.

A period of consolidation followed, with Ether seeing a bullish hammer in July 2021, suggesting that sellers had bottomed.

Jaydee_757, the pseudonymous analyst who first saw the Ethereum fractal highlighted the hammer’s potential to lift the price of ether, with a primary bullish target near the 2.618 Fibonacci line (around $ 13,000).

The bullish analogy also showed signs of a potential bullish crossover in the stochastic RSI and a double high in the RSI waiting to appear on Ether’s monthly chart for the next “months”, similar to the one seen at the 500% rally the price coincided in 2018 as mentioned above.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you will need to do your own research when making a decision.

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