Ethereum Price Consolidates Awaiting Breakout Above $2,600

Ethereum's daily chart has recently shown a bullish flag pattern, with prices consolidating between $2,400 and $2,750. This pattern is characterized by a sharp price increase from $1,900 to $2,730, forming the flagpole, followed by a period of consolidation, which forms the flag. According to the analysis, if the price breaks above the $2,600 resistance level, it could potentially rise to $3,600. This target is calculated by adding the height of the flagpole to the breakout point. The key resistance zone to watch is between $3,000 and $3,100.

The 200-day Exponential Moving Average (EMA) has been providing support for the price, acting as a floor. While the Relative Strength Index (RSI) is still close to overbought territory, it has cooled off in recent days. A breakout above $2,600 with a rising RSI and increasing volume could confirm the bullish trend. However, a drop below $2,400 could invalidate the flag pattern, suggesting a potential reversal.

Additionally, crypto trader Merlijn noted that the 50-day Simple Moving Average (SMA) and the 200-day SMA have formed a golden cross on the 12-hour chart. This technical indicator is often seen as a bullish signal, potentially supporting Ethereum's impending breakout. However, it is important to note that the reliability of a golden cross on the 12-hour chart is generally considered lower than that on the daily chart.