Ethereum: A 7000% hike by 2022 IF history repeats itself

Bitcoin’s move to $55.3k filled the market with euphoria, partially overshadowing Ethereum’s 5% gains in two days. While the top altcoin made slower moves inching north, the anticipation of a slow and steady rally strengthened across the market.

Ethereum, at press time, was trading at $3,540 with daily gains of 1.23% against BTC’s gains of 5.73%. However, there were signs of history repeating itself. Ergo, it seemed likely that ETH’s price would skyrocket on the charts. 

Ethereum fractal could fuel prices

Fractals are indicators that are useful in identifying reversal points in the market. They are often used to identify the direction in which the price will develop. Interestingly, Ethereum saw a fractal indicator in 2017, one which included four technical patterns that pumped ETH’s price up by 7,000%.

Pseudonymous analyst Jaydee_757 first spotted the Etherum fractal and highlighted that the same set of bullish indicators have flashed once again in 2021. 

In 2017, a bullish hammer price structure pushed ETH’s monthly RSI to an extremely overbought zone above 94. This triggered short-term sideways consolidation, lowered RSI reading, and in turn, a correction in the Stochastic RSI. 

Trading View | Source: jaydee_757

However, towards the end of 2017, the stochastic RSI saw a crossover and flipped bullish, with its blue line crossing above the saffron line. This crossover between the %K and %D line further strengthened the alt’s bullish continuation, giving way to 5x gains.

By January 2018, the altcoin’s value had surged by another 500%, closing above $1,200. The same coincided with the RSI forming a double top. 

Notably, Ethereum seemed to be mirroring the same moves from the 2017 fractal as it made an entry into Q4 of 2021. An eerie similarity can be seen in the RSI structures of 2017 and 2021 as both have seen a double top and were oversold on the monthly chart.

Post the bullish hammer, ETH’s price saw a 70x rise in just six months. In the long term, the alt rallied by 3,400% and hit $4,300, 16 months after painting a bullish stochastic RSI crossover. 

Here’s what the metrics tell us

Ethereum’s NVT ratio spiked to its highest value since February 2020 on 4 October. Such high NVT values are indicative of the fact that the network value has been outpacing the value being transferred on the network.

While this often implies a price bubble, in ETH’s case, this can represent legitimate growth stages. 

Source: Glassnode

Now, the low number of active addresses was a worrying stat for ETH’s network. However, a minor recovery in the same seemed to be a good sign, at the time of writing.

All in all, the cards for Ethereum are set for a rally, especially if the fractal plays out well and as expected. 

This news is republished from another source. You can check the original article here

Be the first to comment

Leave a Reply

Your email address will not be published.


*