Reputable analyst Josh Olszewicz has provided some intriguing views on the price development of Ethereum. Olszewicz’s analysis shows that Ethereum might be preparing for a sizable surge in the upcoming months by drawing analogies from historical patterns.

Historical Pattern: Ethereum Forms Ascending Triangle

Olszewicz begins by noting the price trend of Ethereum, mockingly writing, “Ethereum: ascending triangle 450 million years in the making with fib extensions to $3k.” Since May 2022, an ascending triangle with a flat top and rising bottom has been emerging, and if history is any indication, it may be a positive sign for Ethereum.

Another characteristic of this pattern, descending volume, reinforces the pattern’s bullish inclination. Olszewicz issues a warning, stating that “bias remains bullish until price breaks below diagonal support.” The psychological barrier at $2,000 is also mentioned by him, and he describes it as an “extremely obvious signal that it’s go time, which should help the breakout.”

These tendencies are nothing new to Ethereum. ETH had prior examples in 2017 (bullish continuance) and 2019 (bullish reversal), according to Olszewicz. 180 days passed between each ascending triangle pattern. Both times, ETH soared in the direction of the Fibonacci extension level of 2.618.

See also  G20 Leaders Embrace FSB's Guidelines for Cryptocurrency Oversight

He predicts that Bitcoin might rise to $42,000 if certain positive circumstances continue. According to him, “as long as we can maintain prices above the midline of the PF and stay in the cloud, we have a decent shot at reaching $42k before halving.”

Olszewicz concludes his study by imagining a perfect trade in which Bitcoin breaks bullish first, perhaps as a result of technical analysis or the approval of a spot ETF. In this case, Ethereum surpasses $2,000 while trailing Bitcoin, which causes ETH/BTC to “get crushed, allowing for an eventual profit-taking rotation from Bitcoin to Ethereum.” But before he leaves, he adds a warning: “Without inflows, we ain’t moving.”

Share.

Leave a Reply