In the coming 2 months, bids for Ether (ETH), the native token of Ethereum might hit a high of $13,000 if there is a repeat of history. This suggests a 2017 fractal indicator. It consisted of a minimum of 4 technical patterns. The patterns were instrumental as the ETH price saw a 7000% gain.
Now in 2021, the same bullish indicator set is flashing once more. Ether is currently trading more than $3350 and it has rallied more than 360% from the start of the year.
The Explanation For The Ethereum Fractal Of 2017
The 4 technical indicators in question are particularly a retracement level based on Fibonacci, Bullish Hammer, RSI (Relative Strength Index), and Stochastic RSI. In 2017 December, the starting was the occurrence of the Bullish Hammer in the monthly charts of ETH. Over the next 6 months, ETH saw a price rally of 7000%.
The massive upside trend led by the Hammer pushed the monthly RSI of ETH to more than 94. This is a zone classified as extremely overbought. Consequently, Ethereum began a sideways consolidation so that the excess bullish sentiments were neutralized. Thus, RSI began correcting lower.
At the same time, the monthly indicator for Ether’s Stochastic RSI also began to correct lower after Ethereum began to identify as overbought. Later on, this Stochastic RSI became bullish, boosting hopes about Ether’s bullish continuation. Even later, as the New Year came around, the token of Ethereum saw another 500% surge.
Presently, the token of Ethereum is more or less moving in the exact same manner as the fractal of 2017, although the order is not being followed. There has been a 3400% price rally for ETH in the 16 months following a bullish cross being painted on the Stochastic RSI. At the same time, the monthly RSI of ETH has again been pushed into the overbought zone.