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

If history repeats, bids for Ethereum’s native token Ether could reach $13,000 within the next two-months.

This fractal indicator, which consists of at least four patterns that helped push the ETH price higher by more than 7,000% in 2017, is shown. After a rally of over 360%, Ether trades above $3,000.2121.

Explained: The 2017 Ethereum fractal

The four technical indicators that are being discussed in detail are Relative Strength Index, Stochastic RSI and Bullish Hammer. There is also a Fibonacci retracement point. It began with the Bullish Hammer’s appearance on Ether’s monthly charts in December 2017. This was followed by a 7,000% price rise over the next six months.

Hammer’s massive upside move pushed Ether to above 94 on the monthly RSI, which is a highly overbought area. The cryptocurrency began consolidating sideways to counter its bullish sentiments. RSI started correcting lower.

Parallel to this, Ether’s monthly Stochastic RSSI indicator (which compares the closing price to the price range over a period of time) started correcting lower after it identified the cryptocurrency as being overbought. A reading above 80 is considered too bought, and below 20 is excessively sold.

Ethereum 2017 fractal indicator. Source: TradingView.com, Jaydee_757

In November 2017, the Stochastic RSI turned bullish with its %K (the blue line), which compares the lowest low and highest high of an asset to determine a price range. It also crossed above the %D (the saffron) line, which is a moving average %K. Ether’s bullish continuation hopes were boosted by the fact that the Stochastic RSSI reading was higher than 20 at the time of flip.

The Ethereum token surged further by 500% and closed above $1,200 in January 2018. The chart below shows that it coincided with RSI forming a second top. The entire bottom to top occurred within an ascending channel range with the 23.6% Fibonacci Retracement level acting as support/resistance.

The 2021 fractal repeat so Far

As it enters the last quarter of 2021 Ether is nearly mirroring the movements from the 2017 fracturetal, but without order.

Detail: The Ethereum token rose by 3,400%, to $4,300. This was sixteen months after the completion of a bullish StochasticRSI cross. It did this when its %K line surged past the %D line. The huge upside move pushed Ether’s monthly RSI back into the overbought zone, again.

Ethereum 2017 fractal indicator versus Ethereum 2021. Source: TradingView.com, Jaydee_757

The consolidation period ended with Ether making a Bullish Hammer on July 2021. This indicated that sellers had reached a bottom in the price.

Jaydee_757 was the pseudonymous analyst that first noticed the Ethereum fractal. The primary upside target is located near the 2.618 Fib Line (at $13,000).

Related: Three factors that could send Ethereum prices to 100% in Q4

The bullish analogy also took cues form a potential Stochastic RSI Bullish cross and a Double Top RSI, both of which are still waiting to appear on Ether’s monthly chart in the next few months. This is similar to the one that occurred in 2018 with the 500% price rise.

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