Ethereum Rockets Higher – What’s Next?

Ethereum Rockets Higher – What’s Next?

September could be a nightmare for many crypto traders and investors as Ethereum dropped by 16%. According to the records, it is the second-largest level since June.

After the spectacular rally in cryptocurrency over the past 12 months, many expect that the market would experience a pullback.

However the possibility is low when it comes to linking short-term price changes to specific events – and the overall marketplace has been a mess.

Crypto Rally Hits Markets

In the last year, the value of Ethereum skyrocketed by approximately 830%, making it the second most valuable cryptocurrency in terms of market capitalization.

The cryptocurrency market has entered a tumultuous fourth quarter.

The Evergrande company crisis, as well as new rules aimed at restricting or abolishing the cryptocurrency business in several nations, caused cryptocurrency prices to fall.

Major currencies couldn’t run away from the fall, Bitcoin, Ethereum and others were incredibly affected.

It was a particularly difficult period for cryptocurrency. Increased transaction costs and sluggish network speeds continue to be a source of contention.

The flaws of Ethereum, on the other hand, bring advantage to alternative blockchains dubbed “ethereum killers”. Cardano or Solana gain more adoption as users choose to switch from Ethereum to these networks.

Cheap prices, faster transactions and usage make the alternatives unbeatable, especially in comparison with Ethereum price and speed, which has been well-known for being costly and limited.

Despite that, the current overarching platform is still Ethereum with a network spread from decentralized finance (DeFi), blockchain games to NFT.

The fact that Ethereum is moving very close to the old record value, shows that this second largest cryptocurrency will confront some significant obstacles in its attempt to stay ahead of the competition.

Ethereum Price to 100% Gains In Q4?

A market crash is the biggest fear at the moment, and it would cause investors to flee.

Bulls, consolidations, deviations are typical price movements on ETH’s chart since August. The price remained below $3,500 for six days in a row.

But breaking news shows that Ethereum broke through an overhead resistance level, now, many expect the price to hit the $3952 level and probably rally beyond $4000.

A convergence of positive technical and fundamental indications has the potential to more than quadruple the value of Ethereum’s native token, Ether (ETH), in the next months, according to the Ethereum Foundation.

On the first day of October, the price of ether jumped by more than 9%, exceeding $3,300 for the first time in 10 days.

A price bounce across all of the leading digital currencies, including Bitcoin (BTC), which climbed 9.5% to reach $48,000, the highest level in 10 days, was the primary catalyst for it to see gains.

Hard to Call

Despite its restrictions, Ethereum is hard to overlook. Because it’s currently an overcrowded network, it’s significantly more expensive than alternative networks. However, its most significant advantage was that it was one of the first platforms to provide services no other blockchain could.

October is predicted to be a month of significant triggers for the price of Ethereum.

First and foremost, the movement of the cryptocurrency will be determined by the performance of Bitcoin, the largest cryptocurrency in the world. There is a strong relationship between the two.

Second, the price will respond to the dangers that are present in the marketplace.

The US debt ceiling and the Evergrande issue are two of the most significant concerns that are projected. At the end of the month, the price of Ethereum will react to the mainnet upgrade, which will take place in the final week of the month.

Polygon Flips Ethereum on Active User Addresses

However, the spike in active addresses has yet to give Polygon’s MATIC token a meaningful lift. While the token has risen 12% to $1.27 in the first four days of October, it is still down considerably from September’s high of $1.80.

Ethereum fractal from 2017 that resulted in 7,000% gains for ETH appears again in 2021

Bids for Ethereum’s native token, Ether (ETH), could rise to $13,000 in the next two months if history repeats itself.

Ether saw a fractal indicator from 2017, consisting of at least four technical patterns that were instrumental in pushing ETH price up by over 7,000%. The same set of bullish indicators have flashed once again in 2021 as Ether trades above $3,350 after rallying over 360% year-to-date.

The 2017 Ether fractal, explained

In detail, the four technical indicators are the relative strength index (RSI), stochastic RSI, bullish hammer and a Fibonacci retracement level. It started with the bullish hammer’s occurrence on Ether’s monthly chart in December 2017, followed by a 7,000% price rally over the next six months.

The hammer-led massive upside move pushed Ether’s monthly RSI to over 94, an extremely overbought zone. As a result, the cryptocurrency started consolidating sideways to neutralize its excessively bullish sentiments, and thus, the RSI started correcting lower.

In parallel, Ether’s monthly stochastic RSI indicator, which compares its closing price with the price range over a given period, also started correcting lower after identifying the cryptocurrency as overbought (a reading above 80 is considered excessively bought and below 20 is considered excessively sold).

Ethereum 2017 fractal indicator. Source: TradingView/Jaydee_757

Later, in November 2017, the stochastic RSI flipped bullish, with its %K line (the blue one) — which compares an asset’s lowest low and highest high to define a price range — crossing above the %D line (the saffron line) — which is a moving average of %K. Meanwhile, the stochastic RSI reading was above 20 at the time of flip, which boosted Ether’s bullish continuation hopes.

Later, Ether surged by another 500%, closing above $1,200 in January 2018. It coincided with the RSI, forming a double top, as shown in the chart above. The entire bottom-to-top took place inside an ascending channel range, with its 23.6% Fibonacci retracement level serving as a support/resistance level.

The 2021 fractal repeat so far

Ether is almost mirroring the moves from the 2017 fractal as it heads into the final quarter of 2021, albeit without order.

In detail, the Ethereum token rallied by 3,400% to over $4,300, 16 months after painting a bullish stochastic RSI cross (when its a %K line surged above the %D line). Meanwhile, the huge upside move — again — pushed Ether’s monthly RSI into its overbought zone.

Ether 2017 fractal indicator vs. 2021. Source: TradingView/Jaydee_757

A consolidation period followed that saw Ether making a bullish hammer in July 2021, suggesting sellers had formed a price bottom.

Jaydee_757, the pseudonymous analyst who first spotted the Ether fractal, highlighted the hammer’s potential to send Ether price flying, with a primary upside target sitting near the 2.618 Fib line (at around $13,000).

Related: 3 factors that can send Ethereum price to 100% gains in Q4

The bullish analogy also took cues from a potential stochastic RSI bullish cross and a double top RSI, waiting to appear on Ether’s monthly chart in the next “few months,” similar to the one that coincided with the 500% price rally in 2018, as mentioned above.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, and you should conduct your own research when making a decision.