Ethereum Price Can Reach $14K If March 2020 Chart Fractal Stands True

Ethereum’s native asset, Ether (ETH), could close above $14,000 at some point in 2021, given that its current trend is strikingly similar to last year’s.

Ethereum Price Chart Fractals

First discovered by user TradingShot, the Ethereum fractal involves three technical indicators: the 50-day simple moving average (50-day SMA), the Fibonacci channel, and the relative strength index (RSI).

Ethereum closed above its 50-day moving average in July 2021, the first time since the bearish correction in May 2021. As TradingShot noted, swings above the moving average have historically signaled bull runs. For example, a run above the 50-day moving average in April 2020 took the ETH/USD pair from around $170 to over $500 in September 2020 — in just 137 days.

The extreme uptrend period also saw Ether’s daily RSI surge from 60 (neutral) to above 90 (overbought). Meanwhile, as the cryptocurrency rallied, its price action found medium-term support and resistance levels within the Fibonacci Channel.

Expected to hit a record high

TradingShot recounts multiple instances based on fractals from April to September 2020, each of which shows Ether closing above its 50-day moving average and bouncing higher within the Fibonacci channel while its RSI oscillates between neutral and overbought levels. The same is happening in July 2021.

“Once the 50-day moving average is broken, it will take ETH 132, 137, or 70 days to reach the next top on the Fibonacci scale,” the analyst stressed. “As you can see, each top is gradually higher, first at 1.0, then 1.5, and most recently at 2.0 Fibonacci in May.”

Around, the 1.0 level in the next up leg could see ETH/USD test $4,000. Meanwhile, an extended uptrend could see the pair reach the 1.5 and 2.0 Fibonacci levels, which coincide with $6,000 and $9,000, respectively.

But TradingShot pointed out that with each rebound that closes above the 50-day moving average, Ether’s upside target advances one level on the Fibonacci scale. Therefore, the next price target for the cryptocurrency could be at the 2.5 Fibonacci level, which is above $14,000. The analyst added:

“Technically, we can assume that the next top will be at 2.5 or higher, but of course, at current prices, this seems like an extremely high level, especially if it technically ‘needs’ to be achieved in 137 days (or even worse 70 days), as the model suggests.”