FameEX Hot Topics | Key Indicator Signals Bullish Turn as Ethereum Previously Jumped 90%

Ethereum's price is currently consolidating between $2,400 and $2,750, forming a classic bull flag pattern on the daily chart. This technical setup typically appears after a strong upward move—in this case, a rally from $1,900 to $2,730—and signals the potential continuation of the previous uptrend. The current sideways trading range forms the “flag” portion of the pattern, while the prior surge serves as the “flagpole.” If Ethereum breaks above the $2,600 mark, analysts suggest it could retest the resistance zone between $3,000 and $3,100, an area considered pivotal for confirming further bullish momentum.

Market indicators, however, present a mixed picture. The 200-day exponential moving average (EMA) is offering support at the lower end of the consolidation range, helping to maintain bullish sentiment. Meanwhile, the Relative Strength Index (RSI) has cooled from previous overbought levels, indicating the potential for renewed upward movement. Nonetheless, a decisive move below the $2,400 support level would likely invalidate the bull flag structure and expose Ethereum to the risk of a deeper correction. This makes the current trading range crucial to watch.

Further fueling bullish hopes, Ethereum recently attempted to reclaim the mid-line of the 2-week Gaussian Channel, a volatility-adjusted trend indicator. Historically, such a move has preceded major rallies: in 2023, Ethereum surged 93% to reach $4,000 after a similar crossover; in 2020, a breakout above the mid-line triggered a 1,820% rally and kicked off a broader altcoin surge. However, this signal is not foolproof—an example in August 2022 was invalidated during a broader market correction, underscoring the need for cautious interpretation.

Adding weight to the bullish outlook, trader Merlijn pointed to the emergence of a golden cross on the 12-hour chart, where the 50-day simple moving average (SMA) crossed above the 200-day SMA. While this is typically seen as a bullish signal, analysts note that higher timeframes like the daily chart tend to carry more significance. Therefore, confirmation via daily candles and increased trading volume is still required to validate any potential breakout from the current range.

Despite these positive indicators, some traders remain cautious. Crypto analyst XO warned that Ethereum is facing strong resistance just below $2,800, suggesting that failure to break above could lead to a temporary correction. Additionally, Ether recently retested key Fibonacci retracement levels between 0.5 and 0.618, which could signal a pullback. Should that occur, support at $2,150 and $1,900 may provide a floor, but it could also extend Ethereum’s consolidation phase.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.