- Ethereum shows a bull flag pattern on daily charts, suggesting a possible breakout above $3,600.
- The price is consolidating between $2,400 and $2,750, targeting resistance in the $3,000 to $3,100 zone.
- If Ethereum reclaims the mid-line of the two-week Gaussian Channel, past trends indicate potential for a 90% rally.
- A golden cross on the 12-hour chart could further support upward movement, but is seen as less reliable than daily signals.
- Analysts caution that failure to break above $2,800 may lead to a period of sideways trading or a correction.
Ethereum is currently forming a technical pattern called a bull flag on its daily trading chart. The pattern appears as the cryptocurrency consolidates between $2,400 and $2,750. This formation typically suggests the possibility of a continued price increase, with the next resistance expected in the $3,000 to $3,100 range.
A breakout above $2,600 could position Ethereum’s price for a move toward $3,600, based on calculations that add the vertical length of the recent rally, or “flagpole,” to the point of breakout. The 200-day exponential moving average is holding up the lower end of the price range. According to the original report, the relative strength index (RSI)—a measure of buying and selling momentum—has moved down from recent highs but still signals strong interest.
Market analysts highlighted that a breakout paired with increasing RSI and trading volume may confirm the bullish trend. If the price drops below $2,400, this pattern could lose validity. The article also notes that on May 20, Ethereum began a move to reclaim the mid-line of the two-week Gaussian Channel, a technical indicator that tracks price trends within a range which adapts to volatility.
Historical data shows that when Ethereum crosses above the Gaussian Channel mid-line, strong rallies can follow. In 2023, this move preceded a 93% increase. In 2020, Ethereum’s price grew by over 1,800% after a similar setup. However, a similar attempt in August 2022 did not result in a rally, demonstrating that reliance on this indicator carries risk.
A crypto trader known as Merlijn reported a golden cross, where the 50-day simple moving average crosses the 200-day mark on a 12-hour chart, which is generally seen as a bullish sign. Yet, the signal from the 12-hour chart is regarded as less dependable than if it occurred on a daily chart.
Other traders such as XO voiced caution, noting that Ethereum’s price is stalling under a resistance level below $2,800. “I am leaning toward price carving out a range bound environment for at least several weeks potentially longer, and once again becoming a buyer,” the trader said.
Additional data shows Ethereum recently tested the 0.5 to 0.618 levels on the Fibonacci retracement, often used to predict support and resistance points. Failure to maintain higher prices could drive Ethereum back to support around $2,150—or as low as $1,900—slowing the current upward trend.
This article does not provide investment advice. Investors should do their own research before making financial decisions.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Milei Dissolves Crypto Probe Unit Amid LIBRA Scandal Fallout
- Genesis Sues DCG and CEO Silbert, Seeks $3.2B in Crypto Transfers
- Radix Community Backs Repurposing of 2.4B XRD Stablecoin Reserve
- Germany’s 21X launches live operations with tokenized USD yield fund
- SEC Launches Crypto Roundtables, Signaling Shift Toward Engagement
