The broader cryptocurrency market is experiencing choppy momentum following a significant liquidation event on October 10, which was reportedly triggered by escalating tariff tensions. This sell-off caused Ethereum (ETH) to decline from approximately $4,300 to a low of $3,404. Despite a subsequent bounce back to its current price near $3,850, ETH still reflects a 3.82% decrease over the past week.
However, beyond the recent price volatility and cautious market sentiment, Ethereum's latest price movements are beginning to show a resemblance to a familiar fractal pattern that previously appeared in Bitcoin (BTC). If this historical correlation holds true, ETH could be poised for a substantial bullish continuation.
Fractal Setup Hints at a Bullish Continuation
According to crypto analyst CryptoBullet, Ethereum's current price structure is closely mirroring Bitcoin's breakout fractal from February to December 2024. This specific pattern preceded one of Bitcoin's most significant rallies after a prolonged period of correction.
During that time, Bitcoin experienced a substantial sell-off amidst the Yen Carry Trade crisis. However, this was followed by an impressive 123% rally from its crash low, driven by a shift in market sentiment towards bullishness and accelerating momentum.
Ethereum now appears to be following a remarkably similar path. The "tariff crash" on October 10 caused ETH to drop to around $3,400, establishing a significant local bottom before buyer interest returned with renewed confidence. Since then, ETH has recovered to $3,850 and is steadily approaching its key resistance zone, situated between $4,050 and $4,150. This same structural region was instrumental in marking Bitcoin's confirmed reversal during its 2024 recovery phase.
What's Next for ETH?
If this fractal pattern continues to unfold as observed, Ethereum could soon reclaim the $4,050–$4,150 resistance zone. A successful breach of this level would confirm a breakout structure analogous to Bitcoin's historical move.
A decisive close above this resistance could trigger a powerful continuation rally, potentially propelling ETH towards the $6,800 region. This target level would align with the BTC fractal projection overlaid on the current chart.
It is important to note that fractal patterns are not infallible indicators; they serve as visual representations of recurring market behavior rather than definitive forecasts.
Currently, the pattern suggests that Ethereum's recovery momentum remains robust. The coming days will likely be crucial in determining whether ETH confirms its fractal-driven bullish breakout or undergoes a deeper retest of support levels.