• Being in a classic bull flag, Ethereum hints at the continuation of its upward trend
• There have been several resistance at the flag’s top, yet the moving averages still show that ETH’s bullish potential still holds strong.
• According to analysts, it is better to wait for the price to break out before investing more in Ethereum.

A potential breakout has recently been seen on the daily chart for Ethereum (ETH), since it is forming a bull flag pattern. Analysts have noted that the pattern forming is related to the strong rise that took place in mid-April. 

A bull flag is usually a bullish continuation pattern, and it indicates that after a steep rise in price, the market moves in a sideways or downward range that looks like a flag hung on a pole.

It has been noted by Alpha Crypto Signal that ETH has approached the flag’s resistance several times, but it has not broken through firmly. Every time ETH gets rejected at this level, it retreats, and the last rejection took prices down below the middle of the flag channel. 

Source: X @alphacryptosign

Nevertheless, the main concern now is whether Ethereum will be able to overcome this level and turn it into support. Should there be a success, traders could eye the upper part of the flag, as it might signal that the upward movement is likely to keep going.

According to the chart displayed in the analysis, ETH has been between around $2,380 and $2,800 since early May. Its movements are backed up by the 50-day SMA at approximately $2,285 and by the 21-day EMA that is above where it is now. 

The latest chart on TradingView includes more information about Ethereum through momentum indicators. RSI stands at 39.76 at the moment, which is below the neutral 50 level, meaning the price belongs to the bearish side in the short term and could climb up.

Source: TradingView

At the same time, MACD (Moving Average Convergence Divergence) is illustrating a bearish crossover, since the MACD line lies below the signal line, which captures recent losing trends. 

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