Ethereum's ETH Sees Promising Technicals Amidst Price Downturn
Despite a lackluster performance in September, with a 9% drawdown, Ethereum's technical indicators are starting to show promise. In fact, a bullish fractal pattern, similar to one observed in 2021, is emerging.
Bullish Fractal Setup
A market fractal is a historically repetitive pattern that helps traders identify trend reversals. Ethereum's current chart mirrors the 2021 fractal, consisting of a five-point setup:
1. Sharp correction (I-II)
2. Recovery to Fibonacci's golden zone (0.5-0.618) (II-III)
3. Higher low (IV)
4. Lower high (V)
5. Equal low with IV, followed by a liquidity sweep and bullish exit (VI)
2024 Fractal Repeat
The same pattern emerged in Q2 2024, with a sharp correction, recovery, and higher lows. Now, it's repeating itself.
Potential Price Rally
If Ethereum completes the last two points of the setup, the pattern will be identical, increasing the likelihood of a 52% rally to $3,375. Analyst Javon Marks notes that ETH is following a pattern from 2023, which led to a 165% rally in Q1 2024.
Upside Targets
Marks predicts:
- Target: $4,723.5
- Break above: $8,100+ possible
- Potential near 2X price increase or more
With Ethereum's technicals aligning, it may be "go time" for ETH price.
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