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Ethereum’s recent price action saw ETH hit a new low of $2,150 on September 6, prompting concerns of a more severe drop towards the $2,000 price level. While these concerns were allayed by a subsequent rebound to $2,460 on September 13, Ethereum remains largely in a downward trendwith a triple bottom price formation now emerging.
Interestingly, this triple bottom formation is not new for Ethereum. As technical analysis points out, the current price action seems to be repeating a similar move from mid-2021.
Ethereum Fractal Hints at Q4 Rally
According to a technical analysis According to crypto analyst CryptoBullet on social media platform X, Ethereum is preparing to form a triple bottom price formation on the 1D candlestick timeframe. While the third bottom is not yet fully complete, the analyst draws attention to a similar pattern that played out between June and August 2021.
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Over the course of three months, Ethereum price has fluctuated up and down to create three distinct lows just above the $1,675 mark. Once the third low was established, Ethereum experienced a significant surge that propelled it to break above the mark and set its current all-time high. This upward movement became even more pronounced after a fractal pattern emerged in August 2021, signaling a strong shift in momentum.
Recent market momentum has prompted Ethereum to create two bottoms around $2,150 in August and September. Interestingly, a recent rejection at the $2,450 resistance has seen Ethereum continue its decline. This has prompted analyst CryptoBullet to highlight the possibility of a third bottom in October, completing the triple bottom formation.
Price formations in cryptocurrency markets are known to repeat themselves over time, often following patterns that can help traders anticipate future movements. While no two market conditions are exactly the same, studying past price movements provides valuable insights into what could happen in the future. A similar pattern in price action in 2021 leads to a similar uptick for Ethereum in Q4 2024. Notably, the analyst envisioned a rally towards the $3,700 price level.
What’s next for ETH?
At the time of writing, Ethereum is trading at $2,320 and continues to show a Weak short-term outlookIf Ethereum fails to break above the $2,340 resistance, it could start a fresh decline towards $2,150.
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This poor performance and outlook is even more pronounced when compared to Bitcoin. As such, Ethereum/Bitcoin is now at its lowest level since April 2021, a staggering 41-month high. Much of this lackluster action has also been exacerbated by sales from a few large holders. For example, Ethereum co-founder Vitalik Buterin has recently come under scrutiny for selling $2.2 million worth of Ethereum.
Featured image created with Dall.E, chart by Tradingview.com
