Parabolic Support Zone Retest Mirrors 2017 Pattern
Ethereum’s price consolidation between $3,200 and $3,300 follows a recent 5.2% rise. Increased trading volume and whale transactions point to growing institutional interest. The technical pattern mirrors the one preceding Ethereum’s 2017 rally.
Merlijn the Trader highlighted on social media Ethereum’s retesting of its parabolic support zone.
This retest of the parabolic support zone is consistent with major reversals from previous cycles. It’s what kicked off Ethereum’s rally in early 2017. The pattern today is almost a mirror image of that setup.
DeFi Value Locked Reaches $48.3 Billion
Rising interest in Ethereum is reflected by the DeFi total value locked increasing to $48.3 billion. Social channels exhibit cautious optimism as traders remain vigilant about potential price resistance at $3,000, a critical point for market sentiment.
Historical analysis points to potential volatility, as the Dragonfly Doji candlestick pattern often signals significant rally phases. Still, analysts urge caution, underscoring the need for confirmation through sustained price growth and stability.
Historical Patterns Signal Possible Rally Conditions
Historically, the Ethereum charts’ current signals preceded notable rallies. The 2017 pattern led to a 25,000% surge in Ethereum’s price, comparable to periods in 2021 and 2023, each marked by substantial gains and increased market momentum.
Experts from Kanalcoin suggest that rising whale activity, alongside consistent DeFi engagement, supports potential bull market conditions. Nevertheless, resistance level breakthroughs remain necessary for a definitive trend shift towards a sustained rally.
Disclaimer: This website provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing.
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