Ethereum is currently consolidating between the $2,400 and $2,750 range on the daily chart, forming a classic bull flag pattern with a potential upside target around the key resistance zone of $3,000 to $3,100.
A bull flag is a continuation pattern that typically follows a strong rally. In this case, the flagpole extends from $1,900 to $2,730, while the current sideways price action forms the flag itself. If Ethereum manages to break above the $2,600 level, the next target could be around $3,600 — calculated by adding the flagpole’s height to the breakout point.
However, the immediate area of interest remains the resistance zone between $3,000 and $3,100.
Currently, the 200-day Exponential Moving Average (EMA) is providing support near the lower range. The Relative Strength Index (RSI), which had recently entered the overbought territory, has cooled off significantly in recent days, bringing it closer to a neutral level.
A breakout from the current range, supported by rising RSI and trading volume, could confirm the continuation of the bullish trend. On the flip side, a drop below the $2,400 level would likely invalidate the bull flag pattern.
Reclaiming the Gaussian Channel Midline: A Sign of Trend Reversal?
On May 20, Ethereum showed a key shift in momentum as it attempted to reclaim the midline of the 2-week Gaussian Channel — a technical indicator based on the normal distribution, often used to identify long-term price trends.
This channel dynamically adjusts to market volatility, plotting price action within a statistically balanced range. Successfully reclaiming the midline can be interpreted as a signal of a potential bullish trend reversal and entry into a longer-term uptrend.
If the price manages to hold above this midline, the chances of Ethereum reaching higher targets like $3,600 increase. However, failure to do so could lead to further sideways or even bearish movement.
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