Ethereum is preparing for another massive breakout, according to a fractal analysis by a cryptocurrency trader. This comes after ETH underwent a strong drop on Friday, responding to a drop in the value of gold and U.S. equities.

One trader shared the chart below on August 8th, indicating that Ethereums recent price action looks like a consolidation pattern in May 2019. The consolidation was followed by a massive pump in 2019, suggesting ETH will do the same.

I dont know why not all of CT is talking about this ridiculously similar looking fractal. Spoiler: this chop led to another massive pump in 2019.

This isnt the only bullish Ethereum price fractal that has recently been shared.

As reported by NewsBTC previously, a fractal analysis by a trader found that Ethereums macro price action looks similar to BTCs price action from the 2014 highs to the beginning of the 2016-2017 bull run. This analysis suggests that ETH will rally past $1,000 in the middle of 2021.

Ethereums fundamentals are also strong, supporting a move to the upside.

Blockchain data firm IntoTheBlock reported on August 7th that the number of daily ETH transactions is reaching highs not seen since the January 2018 all-time high:

As can be seen in the graph above, the number of transactions has been on a consistent uptrend throughout 2020. On July 27, the number of transactions on the #Ethereum network reached a level not seen since January 3rd of 2018.

IntoTheBlock also indicated that Ethereum has other bullish data, including an increase in total addresses and order book data suggesting there are many buyers of ETH at the moment.

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Ethereum Could Soon Burst Past $400: This Eerie Fractal Shows Why - newsBTC