Key Takeaways:
Ethereum is forming a bull flag on the daily chart, with a potential breakout above $3,600.
If ETH reclaims the 2-week Gaussian Channel mid-line, a 90% rally could occur.
Ethereum (ETH) price is consolidating between $2,400 and $2,750 on its daily chart, forming a bull flag pattern with sights on the $3,000 to $3,100 resistance zone. A bull flag is a continuation pattern that follows a sharp rally (black flagpole) to $2,730 from $1,900, with the current range forming the flag.
Ethereum 1-day chart. Source: Cointelegraph/TradingView
A bullish breakout above $2,600 could target $3,600, which is calculated by adding the flagpole height to the breakout point, but the immediate key area of interest remains between the resistance range at $3,100-$3,000.
The 200-day exponential moving average (EMA) supports the lower range. The relative strength index (RSI), although still near the overbought region, has significantly cooled over the past few days.
An ETH breakout with rising RSI