- Josh Olszewicz explores Ethereum’s intriguing potential as it forms a long-lasting ascending triangle historically linked to bullish market trends.
- Olszewicz’s altcoin chart analysis emphasizes the significance of a potential inverse head-and-shoulders pattern and the critical $300 billion breakout for market direction.
Renowned analyst Josh Olszewicz has recently thoroughly examined Ethereum’s price trends, uncovering an intriguing potential outlook. Olszewicz highlights Ethereum’s consistent development of an ascending triangle since May 2022, humorously noting, “Ethereum: ascending triangle 450 million years in the making w/fib extensions to $3k.” This pattern, featuring a horizontal upper boundary and an ascending lower boundary, has historically been associated with bullish market trends.
1/ $ETH
asc tri 450 million years in the making w/fib extensions to $3k
descending volume
bias remains bullish until price breaks below diag support
$2k psycho res is also a yearly pivot & would be extremely obvious signal that it's go time, which should help the breakout pic.twitter.com/DNPMRexQlO
— Josh Olszewicz (@CarpeNoctom) August 9, 2023
Olszewicz draws on Bitcoin’s past to shed light on Ethereum’s current situation. He highlights that prolonged ascending triangle patterns observed in Bitcoin during 2015/2016 and 2018/2019 often led to significant price increases. Similar historical data for Ethereum shows ascending triangle patterns in 2017 and 2019, resulting in surges toward the 2.618 Fibonacci extension level.
Based on this historical context, Olszewicz suggests that Ethereum can reach this level, which translates to an impressive price of $3,800. However, he emphasizes that breaking the psychological resistance at $2,000 is a crucial prerequisite for such a movement.
Altcoin Chart Analysis Excluding Ethereum and Stablecoins
In yet another one, Olszewicz conducted a chart analysis of altcoins, specifically excluding Ethereum and major stablecoins. He examined the inverse head-and-shoulders pattern, a widely respected bullish technical analysis formation. This pattern occurs when an asset creates three price troughs, with the middle trough being the lowest. A significant breakout or a shift from a bearish to a bullish trend is validated when prices surpass the trendline (referred to as the neckline), connecting the high points between the lows.
WCGW Wednesday: Alts Remain in Purgatory
sponsored by @krakenpro https://t.co/Uv8aT22S4i
— Josh Olszewicz (@CarpeNoctom) August 9, 2023
Market analysts with technical expertise utilize a specific method to determine the price target after a breakout. Moreover, they achieve this by adding the depth of the pattern, which measures the distance between the low point of the head and the neckline’s low point to the breakout point.
Looking at the daily market capitalization chart of the altcoin, we can observe significant points: the left shoulder’s bottom at $188.4 billion, formed in June 2022; the low of the head at $173.23 billion, occurring at the end of December; and the bottom of the right shoulder at $177.36 billion, emerging in June of this year. TradingView data confirms these values.
Despite experiencing a rebound from the low of the right shoulder, this upward momentum has encountered a stall for the past three weeks. The market capitalization has consolidated at approximately $230 billion at the time of this update. Additionally, the pattern will achieve completion when the market capitalization surpasses the resistance at the neckline, positioned near the $300 billion mark.
In a recent update, “
The altcoin market cap is showing some sort of triple bottom/inverted head-and-shoulders situation. I don’t buy the head-and-shoulders pattern sitting in the middle of consolidation. I am waiting for a break above $300 billion.”
The chart displays two potential outcomes: in one scenario, the altcoin’s market capitalization declines from its current point, which would negate the possibility of a valid inverse head-and-shoulders pattern.
