The year 2021 is seeing bullish conditions similar to the ones seen in 2017, causing Ether (ETH), Ethereum’s native token, to trade above $3350. This is after it has rallied over 360% this year till date.
Reminiscent of 2017, ETH witnessed a fractal indicator comprising four patterns that helped nudge ETH prices upwards by 7000%. Almost in a repeat of history, it is expected that bids for ETH could surge to $13000 shortly.
History Repeating Itself?
Moving into Q4 of 2021, ETH is closely repeating moves from the fractal of 2017. ETH rallied by over 3400% to reach $4300 in 16 months after the bullish stochastic RSI cross. ETH’s monthly RSI is again in the overbought zone with the repeat of the massive upside surge.
The consolidation that followed resulted in a bullish hammer for ETH in July 2021 – a clear indication of a price bottom.
There is also a possible stochastic RSI bullish cross with a double top RSI that might be seen on ETH’s monthly chart very soon. This would not be different from the 500% price surge of 2018.
Understanding the ETH Fractal of 2017
The four technical signals are “relative strength index (RSI), the stochastic RSI, bullish hammer and the Fibonacci retracement level”. ETH’s December 2017 monthly chart had a bullish hammer, which soon saw a 7000% price surge.
This large upside led by the bullish hammer moved ETH’s monthly RSI above 94 – extremely overbought. Consequently, to neutralize the bullish run, cryptocurrency commenced a sideways consolidation and the RSI started correcting lower. Concurrently, ETH’s mostly stochastic RSI also corrected lower. This was because the cryptocurrency was overbought. RSI above 80 is seen as overbought and below 20 as oversold.
Subsequently, ETH rose again by 500% to close higher than $1200 in January 2018. At the same time, RSI formed a double top. The complete bottom to top occurred within a rising channel range. Its Fibonacci retracement level of 23.6% acted as the support/resistance level.