Since falling below $2,450 on October 2, Ether (ETH) has consolidated within a narrow $100 range over the past nine days. While Bitcoin has shown more volatility, Ether’s weekly performance has seen only a 1% decline.
On the weekly chart, Ethereum has maintained a bullish stance by staying above the 200-day EMA trendline, signaling potential strength.
Now, several bullish indicators have emerged for Ethereum, suggesting that a positive breakout for the ETH/USD trading pair could be on the horizon.
Last month, Cointelegraph reported that Ethereum’s price action was forming a market fractal similar to patterns seen from May to June 2021 and March to May 2024. In both instances, Ethereum experienced a bullish breakout, and a similar outcome could unfold in the coming weeks.
As shown in the chart, Ethereum’s September gains formed a lower high, aligning with the III and IV phases of the fractal, confirming the formation of phase V. This fractal pattern closely mirrors those seen earlier in 2024, further strengthening the possibility of a bullish breakout.
Over the past week, Ether has established equal lows around $2,300, which may mark the bottom value of phase VI (the final phase). However, even a drop to $2,251 would still keep the fractal pattern intact. The potential bullish breakout could target $3,375, representing a 40% rally from its current price.
In addition to the fractal, the ETH/BTC chart may be signaling a bottom, which could favor Ethereum. Trader Tardigrade, a market analyst, points out that ETH/BTC may have formed a double bottom on the daily chart. This pattern is often a sign of a bullish reversal, with a success rate of 75-80% if it forms over a longer period.
However, this double bottom pattern is incomplete, as the price has yet to return to the resistance line of $0.041 after forming equal lows.
Another analyst, CryptoBullet, believes that ETH/USDT could dip to $2,085 before a bullish breakout. He stated, “Ideally, we should sweep those lows (Aug 5 and Sept 6) this month, completing my triple bottom fractal, and then we can finally take off.”
These analyses suggest that Ethereum may experience short-term declines but remains poised for a potential bullish breakout in the near future.
