Recent price action saw ETH hit another low of $2,150 on September 6, sparking concerns of a more serious drop to $2,000. While these concerns were alleviated when the price bounced to $2,460 on September 13, ETH remains largely in a downtrend and a triple bottom price pattern is currently forming.
Interestingly, this triple bottom pattern is not new to ETH. As technical analysis shows, the current price action seems to be a repeat of a similar action in mid-2021.
ETH Fractal Signals Bullish Price in Q4
According to technical analysis by CryptoBullet analyst on X, ETH is forming a triple bottom price pattern on the 1-day candle time frame. While the third bottom has not yet been fully completed, the analyst noted a similar pattern that took place between June and August 2021.
During those three months, ETH prices fluctuated up and down to create three clear lows just above $1,675. After the third low was set, ETH rallied significantly, pushing it above and setting its current all-time high (ATH). This bullish move became more pronounced after a fractal pattern (a pattern that has already occurred and now repeats itself) emerged in August 2021, signaling a strong change in momentum.
Recent market volatility has pushed ETH to create double bottoms at around $2,150 in August and September. Interestingly, the recent rejection at the $2,450 resistance level has caused the price to decline. This prompted analyst CryptoBullet to highlight the possibility of a third low in October, thus completing the triple bottom pattern.
Cryptocurrency price patterns are known to repeat themselves over time, often following a pattern that can help traders predict future volatility. While no two market conditions are exactly alike, studying past price movements provides valuable insights into what might happen in the future. A similar development in 2021’s price action would produce a similar bull run for the altcoin king in Q4 2024. Notably, the analyst envisions a rally towards $3,700.
What's next for ETH?
At the time of writing, ETH is trading at $2,320 and continues to show a weak short-term outlook. If ETH fails to clear the $2,340 resistance level, it could start another decline towards $2,150.
This poor performance and outlook is even more pronounced than Bitcoin. As a result, ETH/BTC is now at its lowest level since April 2021, a staggering 41-month low. Much of this dismal action has also been exacerbated by some large holders selling off. For example, Ethereum co-founder Vitalik Buterin was recently caught selling $2.2 million worth of ETH.
