ETHEREUM finished its corrective phase & will rise parabolically
As mentioned back in December 2021, Ethereum ( ETHUSD ) was at the start of a corrective mini-phase that we previously saw in October – December 2016.
I made a case back then that ETH was replicating a pattern of its previous Cycle that eventually led to its market top. That is the green Triangle formation of March – September 2016. What followed after was a corrective mini-phase outside the Triangle that extended for roughly 9 – 10 weeks and only found Support on the previous Low.
This time Ethereum broke above the green Triangle and started its corrective mini-phase from higher ground. The 1W RSI sequences of the two fractals also illustrate that. However it also reached the correction phase low in roughly 10 weeks. Last month (March 2022), it made a Higher High for the first time since the correction, confirming that the correction is over, the new Low (bottom) is in and most likely it will now start the big parabolic rally towards the new market (Cycle) top.
Another indicator set that also shows that ETH is at the point of an aggressive bullish break-out, is the 1W MA50 (blue trend-line) and the Upper Bollinger Band (UBB). As you see, in January 2017 those two made contact but didn’t cross each other and then the price bounced aggressively. Right now we had this contact last month and already see the UBB rising.
The comparison with the previous Cycle certainly shows that some phases may not be as aggressive as their respective ones of the previous Cycle. Take for example the rally that followed the market bottom phases (blue Triangles). The one that followed the October 2015 bottom was much more aggressive and quick than the one that followed the March 2020 bottom, which was less aggressive and lengthier.
What’s your view on this one? Do you think that we are just starting the new parabolic rally that will eventually lead to a Cycle Top? Feel free to share your work and let me know in the comments section below!
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