Recent Ethereum price action saw ETH drop to $2,150 on September 6, raising fears of a more severe decline toward the $2,000 price level. Although these fears were assuaged by a subsequent rebound to $2,460 on September 13, Ethereum remains largely in a downward trendwith a triple bottom price formation currently forming.

Interestingly, this triple bottom formation is not novel to Ethereum. As technical analysis indicates, the current price action seems to be repeating a similar play in mid-2021.

Ethereum Fractal Suggests Rally In Q4

According to Technical Analysis by crypto analyst CryptoBullet on social media platform X, Ethereum is shaping up to form a triple price bottom on a 1D candlestick time frame. While the third bottom has not yet been fully completed, the analyst points to a similar pattern that developed between June and August 2021.

During these three months, Ethereum’s price has fluctuated up and down, forming three distinct lows just above the $1,675 level. After establishing the third low, Ethereum experienced a significant bullish rally that pushed it to break through and establish the current all-time high. This bullish move became even more pronounced after the emergence of a fractal pattern in August 2021, signaling a sturdy change in momentum.

Recent market dynamics have seen Ethereum form two lows around $2,150 in August and September. Interestingly, the recent rejection of the $2,450 resistance has seen Ethereum decline. This has prompted the CryptoBullet analyst to highlight the possibility of a third low in October, thus completing the triple bottom formation.

Price patterns in the cryptocurrency markets are known to repeat themselves over time, often following patterns that can support traders predict future moves. While no two market conditions are exactly the same, studying past price movements provides valuable insights into what might happen in the future. A similar playout of price action in 2021 is causing a similar rally for Ethereum in Q4 2024. Interestingly, the analyst predicted 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 is still on an upward trend. indigent short-term prospectsIf Ethereum fails to break through the resistance at $2,340, another decline towards $2,150 could begin.

This indigent performance and outlook is even more evident when compared to Bitcoin. As such, Ethereum/Bitcoin is now at the lowest level since April 2021, a stunning 41-month low. Much of that lackluster stock has also been exacerbated by sell-offs by a few massive holders. For example, Ethereum co-founder Vitalik Buterin recently came under scrutiny for selling $2.2 million worth of Ethereum.

Featured image created with Dall.E, chart from Tradingview.com