Ethereum News Today: Ethereum Surges 28% After Megaphone Breakout, Eyes $4,000

Ethereum has recently formed a bullish flag pattern below the $3,500 resistance level, following a breakout from a megaphone pattern on the 4-hour chart. This development has sparked interest among analysts who are now awaiting confirmation of the next potential move. The megaphone pattern, characterized by higher highs and lower lows, indicated increasing volatility before the breakout. Following the completion of this pattern, Ethereum's price surged from below $2,500 to a peak above $3,200, maintaining higher intraday lows and signaling a directional trend.

The formation of the bullish flag pattern suggests a continuation of the uptrend. This pattern is typically observed in strong uptrends and is characterized by a downward-sloping channel. The flag has developed just beneath the key resistance level of $3,500, which has been defined by past price action. The Relative Strength Index (RSI) remains neutral, within the 50–60 range, indicating room for continued momentum. A volume surge and a close above the flag’s upper boundary could confirm the breakout, potentially targeting $3,800 or $4,000 next.

Traders are closely monitoring the $3,350 level as short-term support. A breakdown below this level could invalidate the bull flag setup and suggest a return to lower ranges. However, for now, Ethereum maintains a bullish bias with traders awaiting confirmation of the next breakout move. The current chart structure and the neutral RSI suggest that the breakout potential toward $3,800–$4,000 remains intact, provided that the support level holds.