Ethereum Crash Bullish Perspectives
Ethereum is notorious for volatility and oversold positions on the 4-hour time frame. Despite the negative price action of Ethereum recently, ETH is currently trading with a bullish reversal pattern known as a falling wedge.
There is a good chance we may print a swing-high up to the $1,665 resistance trendline and if we successfully breakout Ethereum could pump up to $1,820 again in 2022.
September is famous for being a terrible month for the performance of blockchain related assets, especially Bitcoin. As a matter of fact over 75% of Septembers for cryptocurrency are typically bearish.
Bitcoin Monthly Returns
BTC/USD – Monthly Performance Chart. Source: Bybit.
We can see that the historical data in the chart above tells us that September never usually is in our favor if we are looking to grow our portfolios by USD value.
Personally, I like to see September as an undervaluation reaccumulation phase which could potentially be a golden opportunity to stack more blue-chip cryptos before October, November and December which have a much higher chance of seeing positive performance.
Taking advantage of this data and the extreme fear in the market could be prosperous leading up to Q4 2022.
Ethereum 4 Hour RSI
ETH/USD – 4 Hour Time Frame.
Analyzing the Ethereum price charts up close and personal, I’ve come to notice a pattern on the 4-hour time frame. We can see every time that Ethereum reaches the oversold territory (RSI below 30) on the relative strength index we usually see a bullish reversal in the price.
Almost every single time this has offered over 20% in returns when buying the extreme fear and the dip. I speculate that we may see a pump soon for Ethereum as the buying pressure is simple so huge and as the #2 cryptocurrency in terms of market capitalisation is certainly here to stay and have a prosperous long-term existence in the crypto markets.
In my opinion, Ethereum is the tip of the spearhead of all altcoins and will always remain in second position versus other cryptocurrencies.