Ether (ETH), Ethereum’s native asset, is expected to close above $14,000 in2021, based on its present path, which is strikingly similar to that of last year.
One trader identified as TradingShot spotted the Ether price fractal, which uses three traditional technical indicators to forecast an upward trend for Ethereum.
Three technical indicators are used in the Ethereum fractal: a 50-day simple moving average (50-day SMA), a Fibonacci channel, and a relative strength index (RSI).
In July 2021, Ether closed above its 50-day SMA for the first time since the bearish correction in May 2021. Breaking over the stated moving average wave historically signals bull runs, according to TradingShot. For example, in only 137 days, a run-up above the 50-day SMA in April 2020 propelled the ETH/USD exchange rate from roughly $170 to over $500 in September 2020.
Ether’s daily RSI shot up from 60 (neutral) to above 90 during the period of significant upside gains (overbought). In the meantime, the cryptocurrency’s price movements found interim support and resistance levels within a Fibonacci channel as it rose.
A new all-time high is expected.
Multiple examples based on the April-September 2020 fractal were retold by TradingShot, each depicting Ether closing a transaction.
Ether’s upside goal moved one step higher on the Fibonacci scale following each rally after closing above the 50-day SMA, according to TradingShot. As a result, the next price target for the cryptocurrency might be the 2.5 Fib level, which is above $14,000.
The analyst said.
“Technically, we may assume that the next Top will be at 2.5 or higher but certainly that appears to be a very high level from the current prices especially if it technically “needs” to be achieved in 137 days (or even worse 70 days) as the model suggests.”