Ethereum price continues to hold above $2,000, demonstrating remarkable resilience amid persistent bearish market conditions. In light of this resilience, crypto market analyst Merlijn The Trader recently shared new ETH analysis, identifying a recurring historical pattern that has served as a strong bullish signal for cryptocurrency. According to the analyst, this trend has already generated gains of over 10,000% and 4,000%, suggesting that a repeat could trigger another major rally in this cycle.
Ethereum price chart repeats historically bullish trend
In an X post published On Thursday, March 26, Merlijn The Trader shared a three-week price chart highlighting a unique pattern, which he said Ethereum repeated three consecutive cycles almost perfectly. He noted that during each cycle, the trend unfolded in three distinct phases: a consolidation, a retest of the trend line, and a parabolic rally.
During the 2016-2018 cycle highlighted on the chart, Ethereum price started near the lows of $3-$5. Cryptocurrency laterally consolidated for years in the red zone between $11.5 and $27.5 while building an ascending trendline of higher lows below. When the price finally left this trendline, it went parabolic, reaching around $1,400 in 2018, reflecting a massive 10,000% price rise. Following this, Ethereum experienced a major price collapse, erasing almost 90% of its market value, which brought its price down to around $80-100 by the end of 2018, completely resetting the cycle.
Likewise, in the 2018-2021 cycleEthereum started from a low around $80-100, then recovered and slowly entered a long consolidation in the red zone around $300-400. Once again, the cryptocurrency was building an ascending trendline with higher lows below it. Once the cryptocurrency retested this trendline, the breakout was huge, sending ETH well above $4,800 at the end of 2021 and marking a new all-time high. record level.
This roughly 4,000% rally was also supported by a surge in DeFi activity and NFT mania during the cycle. After this jump, Ethereum experienced a price collapse similar to that of the previous cycle, first falling sharply, then briefly rebounding, before finally collapsing below $1,000 again by mid-2022.
What this means for the current cycle
In the current cycle, Merlijn The Trader’s price chart shows that Ethereum is exactly reflecting the trends of the past cycle. The cryptocurrency has moved back up into a new, much higher red zone, around $3,000 to $4,000, with the same ascending trendline forming below. Consolidation within this framework has been prolonged and unstable, highlighting bearish market conditions and weakness.
Merlijn Trader’s projection suggests that this cycle has already completed its consolidation and trendline reset and may now be on the verge of an explosive rally. The analyst outlined two possible scenarios for Ethereum’s next move. He predicts that if ETH continues to hold above $2,000A trendline breakout could occur soon, potentially triggering the historic parabolic surge. However, if the cryptocurrency fails to maintain the $2,000 level, its price could fall further before staging the expected rally.
Featured image created with Dall.E, chart from Tradingview.com
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