Fractal ETH proposes a new market cycle that can drive the Ethereum price up to 0.25 BTC
Yesterday, the Ethereum price jumped from the low-$ 120 up to $ 130, following a 10% increase in Bitcoin. However, analyst Andrew Kang, a former digital asset manager, is still pessimistic about ETH outlook as the price is currently down nearly 2% to $ 126.
Daily Ethereum price chart. Source: Trading View
Prior to yesterday’s rally, the price of Ethereum dropped by 15% and traded within the $ 120- $ 125 range, a significant area for ETH. Crypto analyst Loomdart stated that this price movement of Ethereum is nearing the maximum profitability for longs.
another opportunity has arisen pic.twitter.com/ggYRjqVsUb
— Crypto Loomdart (@loomdart) December 17, 2019
The reasons for this faster than expected decline may be numerous. The most outstanding is a wallet linked to PlusToken that has transferred over 789,525 ETH ($ 105 million) to an unknown wallet, per AZCoin News.
The next is an early investor in the Ethereum ICO who sold nearly 300,000 ETH from his account, dating back to 2015. About six days ago, the account transferred 60,000 ETH out of this wallet.
However, technical analysis shows that the possibility of reversal remains. Analyst Bitcoin Jack stated that the Ethereum price volatility since September could be following a fractal set by Bitcoin price in December 2018 (when it hit the bottom of $ 3400).
I heard you like fractals
Especially the 3-4K Bitcoin fractal
I have one for you$ETHBTC pic.twitter.com/gxIwihtEh4
— //Bitcoin ?ack (@BTC_JackSparrow) December 19, 2019
If so, Ethereum is very near the bottom and will soon start a new market cycle.
December 2018 and the current Ethereum movements have some similarities. More specifically, both movements ended in a Fib 0.786 retracement.
In addition, a review of the quarters shows that: the first quarter has a rapid increase in prices, the second is the consolidation near the highs, while the third and the fourth are declines.
If the price of Ethereum continues to follow this fractal, it will reach a low close to 0.017 BTC before continuing the move up.
ETH/BTC and BTC/USD chart. Source: Trading View
In the context of the long-term descending wedge, the initial movement will cause Ethereum price to break out of the wedge and towards resistance at 0.022 BTC. After a period of consolidation, the price will continue to rally and eventually reach 0.25 BTC.
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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