On May 21st, COINOTAG reported that Ethereum’s price has been consolidating within the range of $2,400 and $2,750, exhibiting a bullish flag pattern. This technical formation suggests a potential target in the resistance zone of $3,000 to $3,100. The formation follows a rapid price surge from $1,900 to $2,730, where the initial spike creates the flagpole, with the current range acting as the flag. Should Ethereum breach the $2,600 level, analysts anticipate a climb towards $3,600, derived from the flagpole’s height added to the breakout point. The 200-day Exponential Moving Average (EMA) has been observed as a crucial support level. Furthermore, while the Relative Strength Index (RSI) remains positioned near the overbought line, it has recently demonstrated signs of cooling. A decisive breakout alongside an uptick in RSI and trading volume could solidify the bullish outlook; however, a downturn below $2,400 would negate the bullish flag scenario.
Additionally, crypto analyst Merlijn has identified a golden cross between the 50-day and 200-day Simple Moving Averages (SMA) on the 12-hour chart. This development may bolster Ethereum’s imminent price movement, although it’s crucial to recognize that golden crosses on shorter timeframes, such as the 12-hour, carry less predictive power compared to their daily counterparts. Careful monitoring of these indicators is essential for traders to navigate the current market conditions effectively.