In a fresh wave of analysis, prominent analyst Josh Olszewicz dives into Ethereum’s price patterns, revealing a potentially exciting forecast. Olszewicz draws attention to Ethereum’s ongoing formation of an ascending triangle since May 2022, intriguingly quipping, “Ethereum: ascending triangle 450 million years in the making w/fib extensions to $3k.” This chart formation, characterized by a flat upper boundary and a rising lower boundary, has historically indicated bullish trends.
Olszewicz references historical instances in Bitcoin’s journey. Drawing parallels between Bitcoin’s past and ETH’s current scenario, he highlights that prolonged ascending triangle patterns often resulted in significant price upswings, as observed in Bitcoin during 2015/2016 and 2018/2019.
Ethereum’s historical data showcases similar ascending triangle patterns in 2017 and 2019, leading to surges toward the 2.618 Fibonacci extension level. Building on this historical precedent, Olszewicz suggests that ETH can reach the 2.618 level, translating to a remarkable price point of $3,800. However, he underscores that breaking the psychological resistance at $2,000 is a critical prerequisite for such a movement.
Ethereum’s Performance vs. Bitcoin
Olszewicz delves into Ethereum’s performance relative to Bitcoin, noting ETH’s underperformance against the backdrop of Bitcoin’s ETF narrative and its entrenched status as hard money. He envisions a potential breakout scenario for ETH against Bitcoin but remains cautious, considering the influence of ETF flows.
Examining potential bearish scenarios, Olszewicz scrutinizes specific levels within the ETH/BTC pair, including the current local low and the previous inverse head and shoulders neckline.
On the broader cryptocurrency landscape, Olszewicz envisions a scenario where Bitcoin takes the lead, potentially driven by technical factors or an ETF approval. In this case, ETH might follow suit by breaking the $2,000 barrier but trailing behind Bitcoin. He speculates that this could lead to a profit-taking rotation from BTC to ETH. However, he emphasizes that such movements depend on substantial inflows.
With a cautionary note, Olszewicz concludes that real progress hinges on the influx of new capital: “without inflows, we ain’t movin.” As the crypto market evolves, Olszewicz’s insights provide a nuanced perspective on Ethereum’s trajectory and the underlying dynamics shaping its future movements.
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