Another rally has initiated on crypto markets and Ethereum has performed particularly well with a pump of 10% over the past few hours. Fractal patterns are often used to make price predictions and those on the Ethereum charts are very clear at the moment.
Repeating Patterns For ETH
Fractals are a price prediction tool which can be used when a pattern repeats itself on a smaller scale. They can be seen in all forms of nature and are repeated in financial markets. Mathematical patterns and an element of chaos theory indicate that a random cyclical action will produce a fractal.
Traders on twitter have noticed that Ethereum’s fractal has just played out and some have made predictions as to where it will go next.
$ETH fractal playing out. pic.twitter.com/N3z1Xy2NKX
— Hsaka (@HsakaTrades) March 5, 2019
The v-shaped pattern following the big dump is virtually a mirror of the same pattern that played out in early January. Back then Ethereum climbed to a high of $160 before a big dump took it back down to $127 on January 11th.
Ethereum prices YTD. Coinmarketcap.com
Last week’s dump dropped Ethereum from $165 to $135 before prices eroded over the week to the same low of $127. Over the past 24 hours Ethereum has recovered around 10% to surge from $127 to an intraday high of $140. Daily volume has exceeded $5 billion once again as markets rebound. The move has recovered all of Ethereum’s losses over the past week. Again XRP has not managed to gain much which has increased the market cap gab between the two to $1.4 billion.
Further Fractals For Ethereum
Others have predicted that a second fractal will play out, again mirroring one that occurred in late December 2018. This would take Ethereum prices back to $165 forming a head and shoulders pattern.
$ETH fractal playing out. pic.twitter.com/cDJZvn7bVk
— J.L. (@Depictograph) March 5, 2019
This second scenario would trap traders at the top and could result in another dump dropping ETH back to around $120. From a technical analysis viewpoint these movements are clearly plausible.
Fundamentally the world’s second largest crypto asset is getting a boost from the SIX Swiss Exchange announcing an Ethereum ETP. The new Ethereum product trading at the largest stock exchange in Switzerland has been issued by cryptocurrency startup Amun AG, which based in the country’s blockchain hub, Zug. The exchange already has a Bitcoin exchange traded product which it launched at the end of last month.
At the time of writing Ethereum was trading 7% higher on the day at $137. Since its December low of $85 Ethereum has recovered over 60% to its current level, outperforming Bitcoin by a clear margin. If the current mini rally can be sustained ETH could well break through resistance at $150 later this week.
Image from Shutterstock
