Ethereum (ETH) price action has been disappointing recently, with a 9% drop in September. ETH’s Q3 is on track to be its third-worst period since launch in terms of returns.
However, as the bullish fractal reached a critical point, technical indicators in favor of the altcoin began to appear.
Ethereum reflects the fractals of 2021 and 2024.
From a technical perspective, market fractals are historically recurring patterns that allow traders to identify trend reversals on charts. Ethereum is currently drawing a bullish fractal setup that was first observed in 2021.
The chart below shows that the pattern consists of 5 point setups. The pattern showed a sharp correction as follows: me and 2 years oldand 2 years old Fractal displays low values. 2 years old to 3 years oldThe price recovers to the Fibonacci zone of 0.5-0.618, i.e. the golden zone.
Ethereum 1-day chart. Source: TradingView
4.4. Indicates a higher minimum for . 2 years old, and five It shows a lower peak value compared to . 3 years old. finally, 6.6. It forms a low point equivalent to 4, After a large liquidity burst, the fractal ends with a bullish exit.
For other fractals to follow the same path, these important fundamentals must be repeated.
In 2024, the same fractal pattern can be identified in Q2, following exactly the 5-point setup and the end of the bullish trend.6.6. In the market. After a sharp price correction, it recovered to the “golden zone” and formed higher lows and lower highs. Now it is forming again.
Ethereum 1-day chart. Source: TradingView
Ether is not yet complete 6.6.This would be another low liquidity surge around $2,150.4.4.) could then close strong to $3,375, which would be a 52% rally.
If Ether confirms the last two setup points, the pattern will be exactly the same, which increases the likelihood of a parabolic rally in the coming weeks.
According to analysts, ETH price is “at the start of its run.”
Ethereum struggled to appease ETH holders in Q3, with the altcoin down 33% since early July.
However, few analysts believe that ETH is ready for a new rally after such a tumultuous period. Independent market analyst Jayvon Marks points out that ETH is following the pattern of 2023, which led to a 165% rally in Q1 2024. Marks emphasizes in his X post that it is “time to start” for ETH, saying:
“2023 looks like a blueprint for another massive rally that could soon occur in this crypto market. The target is $4,723.5, and a break above that would bring $8,100+ into the game, which would see the price nearly double, with much higher upside potential.
Similar to the high price target of $8,100 suggested by the above analyst, anonymous trader CoinsKid sees $8,000 as a high price based on the situation that has been forming since 2019.
Ethereum Analysis by CoinsKid. Source: X.com
The context follows an extended ascending wedge pattern for ETH, which is close to completing a four-point contact pattern. However, the analyst says a bounce from current levels is crucial, otherwise the pattern could be invalidated at $1,511.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.