Ethereum is preparing for another massive breakout, according to a fractal analysis by a cryptocurrency trader. This comes after ETH underwent a strong drop on Friday, responding to a drop in the value of gold and U.S. equities.

Related Reading: Crypto Tidbits: Bitcoin Explodes Past $11k, Ethereum 2.0 Nears, Cardano’s Shelley Launches

Ethereum Could Soon Break $400: Here’s Why

One trader shared the chart below on August 8th, indicating that Ethereum’s recent price action looks like a consolidation pattern in May 2019. The consolidation was followed by a “massive pump” in 2019, suggesting ETH will do the same.

“I don’t know why not all of CT is talking about this ridiculously similar looking fractal. Spoiler: this chop led to another massive pump in 2019.”

Chart of ETH's price action with a fractal analysis by trader Byzantine General (@Byzgeneral on Twitter). Chart from TradingView.com
Related Reading: How U.S. Restrictions on Wechat & Other Chinese Brands Could Boost Crypto

This isn’t the only bullish Ethereum price fractal that has recently been shared.

As reported by NewsBTC previously, a fractal analysis by a trader found that Ethereum’s macro price action looks similar to BTC’s price action from the 2014 highs to the beginning of the 2016-2017 bull run. This analysis suggests that ETH will rally past $1,000 in the middle of 2021.

Image

Fractal analysis of ETH's macro price action by trader "The Crypto Wolf," who called recent price action. Chart from TradingView.com
Related Reading: XRP Breaking Past This Crucial Resistance Could Trigger 45% Rally: Trader

ETH’s Fundamentals Are Strong, Too

Ethereum’s fundamentals are also strong, supporting a move to the upside.

Blockchain data firm IntoTheBlock reported on August 7th that the number of daily ETH transactions is reaching highs not seen since the January 2018 all-time high:

“As can be seen in the graph above, the number of transactions has been on a consistent uptrend throughout 2020. On July 27, the number of transactions on the #Ethereum network reached a level not seen since January 3rd of 2018.”

Ethereum transactions

Chart of ETH’s daily transaction count with price overlay from IntoTheBlock. Current as of Aug. 7.

IntoTheBlock also indicated that Ethereum has other bullish data, including an increase in total addresses and order book data suggesting there are  many buyers of ETH at the moment.

Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
Ethereum Could Soon Burst Past $400: This Eerie Fractal Shows Why

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here