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Ethereum is exhibiting strong bullish momentum after breaking out of a megaphone pattern, consolidating in a bullish flag below the critical $3,500 resistance level.
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Trading volume surged by over 17%, reflecting heightened buyer interest and reinforcing the potential for further upward price movement.
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COINOTAG analyst Alex Clay highlights the completion of the megaphone pattern and the formation of a bullish flag, signaling a likely continuation of Ethereum’s upward trend.
Ethereum’s breakout from a megaphone pattern and subsequent bullish flag formation signal strong upward momentum, with $3,350 support key for targeting $3,800–$4,000.
Ethereum’s Megaphone Breakout Sets Stage for Bullish Continuation
Ethereum’s recent price action on the 4-hour chart reveals a significant technical development: the completion of a megaphone pattern, characterized by expanding volatility with higher highs and lower lows. This pattern often precedes decisive directional moves, and Ethereum’s breakout above this structure marks a critical shift from indecision to bullish momentum. Following the breakout, ETH surged from below $2,500 to levels exceeding $3,200, establishing a series of higher intraday lows that underscore sustained buying pressure. This movement is supported by a notable 17.17% increase in 24-hour trading volume, reaching $36.69 billion, which confirms robust market participation and buyer confidence.
Technical Insights from COINOTAG Analyst Alex Clay
Alex Clay, a respected voice in crypto technical analysis, emphasizes the significance of Ethereum’s chart patterns. He notes that the megaphone completion “signals the end of indecision” and that the subsequent formation of a bullish flag just below the $3,500 resistance level is a classic continuation pattern. Clay’s analysis suggests that this setup is primed for a breakout, potentially propelling Ethereum toward higher targets. His insights provide traders with a framework to anticipate market behavior based on established technical signals, reinforcing the bullish narrative around ETH’s price trajectory.
Bullish Flag Consolidation Indicates Potential for Next Upward Leg
After the breakout from the megaphone, Ethereum has entered a consolidation phase within a bullish flag pattern. This formation typically appears as a downward-sloping channel following a strong upward move and often precedes further gains. The flag is currently positioned just below the $3,500 resistance, a level that has historically acted as a price ceiling. During this consolidation, trading volume has tapered off, aligning with the expected characteristics of a flag pattern where volume contracts before a breakout. The Relative Strength Index (RSI) remains neutral, hovering between 50 and 60, indicating that Ethereum has room to build momentum without being overextended.
Market participants are closely monitoring the $3,350 support level, which serves as a critical short-term floor. A sustained hold above this support will maintain the bullish setup, while a breakdown could invalidate the flag and signal a potential retracement. Should Ethereum break above the flag’s upper boundary with increased volume, the next price targets are projected in the $3,800 to $4,000 range, marking a significant continuation of the current uptrend.
Volume and Market Cap Confirm Strength of Current Move
The recent surge in trading volume to $36.69 billion, coupled with Ethereum’s market capitalization reaching approximately $383.87 billion, underscores the strength behind the current price action. Increased volume during breakout phases is a critical confirmation signal, indicating genuine buying interest rather than a short-lived spike. This robust market activity suggests that institutional and retail investors alike are positioning for further gains, adding credibility to the bullish technical outlook. Maintaining vigilance on volume trends will be essential for traders seeking to validate the sustainability of Ethereum’s upward trajectory.
Conclusion
Ethereum’s technical landscape is currently favorable, with the completion of a megaphone pattern followed by a bullish flag consolidation signaling potential for continued price appreciation. The key support at $3,350 remains pivotal for maintaining this bullish bias, while a decisive breakout above $3,500 could open the path toward $3,800 and beyond. Traders and investors should monitor volume dynamics and RSI levels closely to confirm momentum and manage risk effectively. Overall, Ethereum’s chart patterns and market metrics suggest a strong foundation for the next phase of upward movement, making it a critical asset to watch in the evolving crypto market.
