History on the stock market rarely, but still sometimes repeated. In light of the recent recovery of Ethereum after falling to a yearly low of the phrase “cryptocurrency found the bottom” doesn’t seem so meaningless. In technical analysis there is the concept of fractals — market structures, which may be repeated after a certain time.
If Ethereum really stopped falling, it may be a good signal for almost all altcoins. In Coindesk collected a few signs that the bullish season is approaching.
The past and the future of Ethereum
The price movement of cryptocurrency trading pair ETHBTC suspiciously exactly the same as the fractal 2017. Then the air fell by nearly 84 percent, but then rebounded to a new high.
Visually both of the fractal are very similar, between them there are three characteristic in common. Look at them below.
The formation of a local minimum above the previous is a good sign for uptrend formation. If this trend persists long enough, there is a high probability of a new bullish trend.
In both graphs we can clearly discern this pattern. What is even more interesting, in both cases, the Ethereum price found support at the Fibonacci 0.5 level.
Moving averages is an excellent tool for the recognition of a new trend. These lines also serve as a good dynamic levels of support/resistance.
On 4-hour chart in 2017 the price of Ethereum failed to break above the 200 EMA and a pullback to 100 EMA. There is an asset found support and continued gradual growth. The same situation repeats now exactly to the smallest details.
Finally, both of the fractal have the same shape. In General, Rising Wedge is considered bearish pattern that signals about the downtrend. However, if sellers was not able to bring the situation under control, cryptocurrency will enter a new stage of growth. So already in 2017 and can happen again.
The main support remains the Fibonacci level of 0.5. Now he is in the area 0,032 BTC. Hdlite The Ethereum? Let’s discuss the market in cryptodata.
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