Ethereum price remains above $2,000, showing remarkable resilience under the circumstances. Continued bear market conditions. Given this resilience, cryptocurrency market analyst Marlin the Trader recently shared new ETH analysis and identified historical patterns that have been repeating themselves. strong bullish signal For cryptocurrencies. The analyst said this pattern has previously led to gains of more than 10,000% and more than 4,000%, suggesting a repeat could lead to another big rally this cycle.
Ethereum price chart repeats historic bullish pattern
Posted by X published On Thursday, March 26th, Marlin the Trader shared a three-week price chart highlighting a unique pattern in which Ethereum has repeated three near-perfect cycles in a row. He says that during each cycle, the pattern goes through three different stages: consolidation, retesting the trend line, and Parabola Rally.
In the 2016-2018 cycle highlighted in the chart, Ethereum price started around the lows of $3 to $5. cryptocurrency integrated horizontally For years, it has hovered in the red box zone between $11.5 and $27.5, building an uptrend line with rising lows below it. Eventually, the price broke out of that trendline and went parabolic, rising to around $1,400 in 2018, reflecting a massive 10,000% price increase. Following this, Ethereum experienced a significant price collapse, wiping out almost 90% of its market value, and by late 2018, the price had returned from around $80 to $100, completely resetting the cycle.
Similarly, Cycle 2018-2021Ethereum started off with a low around $80-$100, then recovered and slowly entered a long consolidation within the red box around $300-$400. Once again, the cryptocurrency was building an uptrend line with higher lows below it. Once the cryptocurrency retested this trend line, the breakout was significant and by late 2021, ETH was well above $4,800, marking a new record. Best ever.
This roughly 4,000% rise was also supported by a surge in DeFi activity. NFT mania During the cycle. After this surge, Ethereum experienced a price collapse similar to the previous cycle, first dropping significantly, then briefly rebounding, and finally By mid-2022, it will fall below $1,000 again.
What this means for the current cycle
In the current cycle, Merlijn The Trader’s price chart shows that Ethereum is accurately reflecting past cycle trends. The cryptocurrency has returned to a new much higher red box zone around $3,000 to $4,000, with the same uptrend line forming below. It emphasizes that integration within this box is unstable over time. bearish market conditions And weakness.
Merlein the Trader’s predictions suggest that this cycle has already completed its consolidation and trendline reset and may now be on the brink of an explosive rally. The analyst outlined two possible scenarios for Ethereum’s next move. he predicts that ETH remains above $2,000a breakout from the trend line could occur soon, triggering a historic parabolic rally. However, if the cryptocurrency fails to sustain the $2,000 level, the price could fall again before the expected rally occurs.
Featured image created by Dall.E, chart on Tradingview.com
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