ETHs Gold-Like Setup: Will History Repeat?

Gold shot up 142 percent following its breakout setup. Ethereum is now at the same technical trigger point. The trend indicates a huge upside in the event that ETH breaks out.

The analyst observed the development of gold through certain phases. Formation of the range was followed by a simulated breakout. Before the explosive rally started, a violent shakeout had taken place.

Ether seems to go through this very order. The four-year range of consolidation is like gold. The shakeout exactly reflects recent price action.

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Higher Highs Signal Continuation

Directional conviction is still dependent on market structure. Every consecutive high and low supports the bullish bias. The inability to preserve this trend would indicate a possible reversal.

The majority of current consolidation tests require investor patience and conviction. The jerky price movement cleanses weak hands frequently. Powerful hands build up when there is uncertainty in technology.

Based on recent analysis, institutional demand has kept advancing under apparent volatility. Big holders hold on to their positions even in the face of price fluctuations in the short run. This is a form of accumulation that has historically been followed by big moves.

The analogy of gold is not restricted to straightforward chart patterns. Both assets had prolonged periods of consolidation followed by a breakout.