Ethereum (ETH)’s recent price action has been unimpressive, with a 9% drop in September. ETH’s Q3 is on track to be its third-worst return since its inception.
However, favorable technical signals are gradually emerging in this altcoin, as a bullish fractal pattern is approaching completion.
Ethereum 2024 Reflects Fractal From 2021
From a technical perspective, a fractal is a pattern that has been repeated over time in history, allowing traders to spot trend reversals on the chart. Currently, Ethereum is exhibiting a bullish fractal setup, the first observed in 2021.
The chart below illustrates that this pattern consists of a five-point setup. The pattern saw a sharp correction between I and II, and II marked the lowest price of the fractal. From II to III, the price rallied to the 0.5-0.618 Fibonacci zone, which is the “golden ratio” zone.
IV shows a higher low than II, and V shows a lower high than III. Finally, VI makes a bottom on par with IV, where a liquidity sweep occurs and the fractal ends with a bullish bounce.
These important basic points must be repeated so that another fractal can continue along the same path.
In 2024, the same fractal pattern can be identified in Q2, which follows the exact five-point setup and the bullish bounce after VI point in the market. A strong price correction was followed by a recovery to the “golden ratio” before forming higher lows and lower highs. Now, it is forming again.
Ether has not completed point VI yet, which would be another liquidity sweep down to $2,150 (IV) before a potential bullish exit to $3,375, which would be a 52% rally.
If Ether confirms the last two points of the setup, the pattern will be exactly the same, increasing the likelihood of a parabolic rally in the coming weeks.
Analyst Says ETH’s “Time Has Come”
Ethereum has struggled to satisfy ETH investors in Q3, as the altcoin has fallen 33% since the start of July.
However, some analysts believe that Ether is preparing for a new bull run after a volatile period. Javon Marks, an independent market analyst, believes that ETH is following a pattern from 2023 that led to a 165% increase in Q1 2024. In a post on X, Marks emphasized that it is “action time” for ETH, saying,
“2023 seems to be the blueprint for another strong bull run that could be imminent in this crypto market. The target is $4,723 and a breakout above this level could put $8,100+ in sight, with the potential for a near 2X rally, if not more.”
Similar to the above analyst’s $8,100 target, CoinsKid, an anonymous analyst, also predicted a high of $8,000 based on a setup that has been forming since 2019.
ETH/USDT Weekly Chart
The setup in this context follows a bullish expanding wedge pattern for ETH, and it is close to completing a four-point contact pattern. However, the analyst emphasizes that a bounce from current levels is crucial; otherwise, the pattern could be invalidated at $1,511.
