Analyst Josh Olszewicz, well-known in the field, has provided insightful thoughts on Ethereum’s price outlook.
By comparing past trends, his analysis indicates that Ethereum could experience a noteworthy surge in the upcoming months.
Ethereum has displayed an ascending triangle in its historical pattern
Olszewicz begins by emphasizing Ethereum’s present price pattern, saying, Ethereum: an ascending triangle 450 million years in the making w/fib extensions to $3k.”
Since May 2022, an ascending triangle with a level top and upward-sloping bottom has been shaping up. This historical pattern, known for its bullish implications, could be favorable for Ethereum’s future.
The bullish outlook is reinforced by the descending volume, which is another characteristic of this pattern.
Take a look:
— Josh Olszewicz (@CarpeNoctom) August 9, 2023
Olszewicz, on the other hand, warns that the “bias remains bullish until price breaks below diagonal support.”
He also mentions psychological resistance at $2,000 as an “extremely obvious signal that it’s gone time, which should help the breakout.”
Olszewicz enhances his analysis by drawing comparisons to Bitcoin’s previous performance.
He recalls, “Take BTC in 2015/2016 [the price formed an ascending triangle for 210 days with descending volume] and BTC in 2018/2019 [ascending triangle for 130 days with descending volume] as examples.”
Bitcoin experienced surges toward Fibonacci extension levels after breakouts in both cases. Similarly, Ethereum has encountered similar patterns before.
According to Olszewicz, “ETH has also had previous examples in 2017 (bullish continuation) and 2019 (bullish reversal).”
In the past, each ascending triangle lasted 180 days, with ETH surging to the 2.618 Fibonacci extension level.
Using these patterns, Olszewicz proposes that Ethereum could surpass the 1.618 Fibonacci level, aiming for the 2.618 level at around $3,800. He cautions against premature excitement, advising waiting for a breach of $2,000 first.