Ethereum Price Uses Same Playbook That Has Led to 10,000% and 4,000% Increases in the Past.
Ethereum price continues to hold above $2,000, showing significant strength in ongoing market conditions. Due to this strength, crypto market analyst Merlijn The Trader recently shared a new analysis of ETH, pointing to a recurring historical pattern that has acted as strong bullish signal with cryptocurrency. According to the analyst, this pattern has previously driven gains of more than 10,000% and 4,000%, suggesting that a rebound may cause another major rally in this cycle.
Ethereum Price Chart Repeats Historically Bullish Pattern
In X’s post published on Thursday, 26 March, Merlijn The Trader shared a three-week price chart that highlights a unique pattern, which he says Ethereum has repeated for almost three cycles in a row. He noted that during each cycle, the pattern unfolds in three distinct stages: consolidation, line retesting, and parabolic rally.
In the 2016-2018 cycle highlighted in the chart, the price of Ethereum started near the low price of $3-$5. Cryptocurrency joined at the sides years in the red box area between $11.5 and $27.5 while an ascending line of high decline is formed below it. When the price finally broke out of that trend line, it moved in the same direction, rising to around $1,400 in 2018, marking a massive 10,000% price rally. After this, Ethereum experienced a huge price drop, wiping out about 90% of its market value, which pulled its price back to about $80-$100 in late 2018, completely resetting the cycle.
Similarly, in 2018-2021 cycleEthereum started from a decline around $80-$100, then recovered and gradually entered a long consolidation within the red box around $300-$400. Also, the cryptocurrency formed an upward trendline of a high drop below it. When the cryptocurrency repeated this route, the breakout was huge, sending ETH all the way above $4,800 in late 2021 and a new mark. world class.
This 4,000% rally was also supported by the increase in DeFi activity as well NFT mania during the cycle. After this jump, Ethereum experienced the same price collapse as in the previous cycle, first falling hard, then bouncing slightly, before finally ending. it crashes back to below $1,000 by mid-2022.
What This Means for the Current Cycle
In the current cycle, Merlijn The Trader’s price chart shows that Ethereum accurately reflects the trends of the previous cycle. The cryptocurrency rose back to a new, higher red box area around $3,000-$4,000, with the same rising line forming below. The integration within this box is extended and flexible, it is emphasized bearish market conditions and weakness.
Merlijn The Trader’s predictions suggest that this cycle has already completed its consolidation and resetting of the trend line and may now be on the verge of a breakout rally. The analyst described two possible scenarios for Ethereum’s next step. He predicts that if ETH continues to hold above $2,000a trend line breakout is likely soon, which could trigger a historic parabolic breakout. However, if the cryptocurrency fails to maintain the level of $ 2,000, its price can fall again before organizing the expected rally.
The featured image was created with Dall.E, a chart from Tradingview.com
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