Ethereum Fractal Suggests Rally In Q4

Recent Ethereum price action saw ETH reaching another low of $2,150 on September 6, raising concerns of a more severe drop towards the $2,000 price level. Although these concerns were eased with a subsequent bounce to $2,460 on September 13, Ethereum remains largely in a downtrend, with a triple-bottom price formation now shaping up.

Triple Bottom Formation

Interestingly, this triple bottom formation is not new for Ethereum. As technical analysis points out, the current price action seems to repeat a similar playout in mid-2021.

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Ethereum Fractal Suggests Rally In Q4

According to a technical analysis by crypto analyst CryptoBullet on social media platform X, Ethereum is shaping up to form a triple bottom price formation on the 1D candlestick time frame. While the third bottom has yet to be fully completed, the analyst draws attention to a similar pattern that unfolded between June and August 2021.

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During those three months, Ethereum’s price fluctuated up and down to create three distinct lows just above the $1,675 mark. After the third low was established, Ethereum experienced a significant bullish rally that propelled it to break through and establish its current all-time high. This upward movement became even more pronounced after a fractal pattern emerged in August 2021, signaling a strong momentum shift.

What’s Next For ETH?

At the time of writing, Ethereum is trading at $2,320 and continues to exhibit a weak short-term outlook. If Ethereum fails to clear the $2,340 resistance, it could start another decline towards $2,150.

Conclusion

In conclusion, Ethereum’s price action has been marked by a triple-bottom formation, with the possibility of a third low in October. While no two market conditions are exactly the same, studying past price movements provides valuable insights into what may happen in the future. A similar playout of the 2021 price action puts on a similar surge for Ethereum in Q4 2024.

FAQs

What is a triple-bottom price formation?
A triple-bottom price formation is a technical analysis pattern where a security’s price reaches a low, rebounds, and then falls again to the same low. This pattern is often considered a sign of a reversal in the market trend.

What does the triple-bottom formation mean for Ethereum?
The triple-bottom formation suggests that Ethereum’s price may be about to bounce back and experience a significant rally, potentially reaching a price level of $3,700 in Q4 2024.

What is a fractal pattern?
A fractal pattern is a technical analysis pattern that involves a repeat of a price movement at a different scale. In this case, the analyst is highlighting a similar price movement that occurred in 2021, which suggests that a similar surge in Ethereum’s price may be on the horizon.

What is CryptoBullet?
CryptoBullet is a crypto analyst who has been monitoring Ethereum’s price action and has identified a potential triple-bottom formation.