It is a rare sight in the crypto community to see Ethereum (ETH) in the green after a long queue of weeks in the red. The daily chart above for ETH/USD shows that Ethereum (ETH) is just a single step away from kicking off the altcoin rally. This chart is the perfect example of how history may not repeat itself but it does rhyme. The pattern of rise before 2018 bears a striking resemblance to the one just after 2017. Similarly, the correction that followed after 2016 resembles the one that followed 2018. If history is any indication, we can presume that Ethereum (ETH) has completed its correction at this point and found a bottom.
RSI for the above chart for ETH/USD presents a very similar picture. The RSI has been trading in a symmetrical pattern inside a semicircle. It has already bottomed out and is now preparing to break the resistance and begin a new trend. If the RSI is considered to have been in symmetry, we will see three months of September as inflection points. The first month would be September 2016. At this point, the price turned bullish and began a rally as shown by similar movement on the RSI. The next point would be September 2017 which from a mathematical standpoint can be considered as global maxima for the curve and was the turning point that led to the end of the rally and the beginning of the correction. The next point would be September 2018 which can be considered another inflection point for the beginning of a new curve that would once again begin a new trend for Ethereum (ETH).
As we have seen before, markets follow cycles. When a cycle is supposed to complete and a new one is expected to begin, all the fundamental indicators start supporting the technical indicators. Soon as the new trend begins, all the FUD and negativity in the market will be forgotten and a series of bullish and even very optimistic news and events will suddenly begin to dominate the market. This could also have a negative effect as some people soon forget what happened just before this correction began and they assume that things are going to go on like this forever, being oblivious to the fact that markets follow cycles, not emotions.
Just as it is unreasonable to assume a bullish market will keep on being bullish forever, it is similarly unreasonable to expect that this correction will last forever. The above chart for ETH/BTC on the daily time frame shows that Ethereum (ETH) has just formed its first green candle since the beginning of this month. It has also bounced strongly off the support at 0.00270. Wave trend analysis for the above chart shows that the market is ready to reverse. VIX profile for the above chart shows that Ethereum (ETH) has found a bottom and is now ready to break out of the falling wedge to begin a new trend. With today’s rise in Ethereum (ETH), we have already seen life pumped back into most altcoins. The cryptocurrency is now one heartbeat away from breaking the downtrend resistance and kicking off the altcoin rally.