Ethereum Price Analysis: Bullish Flag Calls for $5,000 Price Tar
Ethereum (ETH) has developed a bullish flag formation, which is a continuation signal that calls for a $5,000 price target. If the bullish flag pattern is confirmed, this could send Ethereum's price to a new all-time high above the previous high of $4,384.
Bull Flag Pattern
On the daily chart, Ethereum's flag pattern pole was created between 20 July and 13 August, and the flag between 9 August and 30 August. The cryptocurrency already broke out of its bull flag, indicating that the three-week-long consolidation phase has ended and the prevailing uptrend has resumed.
The projected target of a bull flag pattern is taken by measuring the length of the preceding bull run, also known as the pole, and adding the same price length to the breakout price of the flag. In this case, the flag breakout has opened the door for the price to move towards the considerable psychological number of $5,000.
Momentum RSI Reading
The $5,000 price projection is also supported by positive momentum readings. The RSI has printed consistent readings above the mid-level 50, signaling that we have bullish momentum behind the current rally. In addition, ETH prices are above the critical 200-day EMA, which also supports the bullish case scenario.
Bull Flag Pattern
On the daily chart, Ethereum's flag pattern pole was created between 20 July and 13 August, and the flag between 9 August and 30 August. The cryptocurrency already broke out of its bull flag, indicating that the three-week-long consolidation phase has ended and the prevailing uptrend has resumed.
The projected target of a bull flag pattern is taken by measuring the length of the preceding bull run, also known as the pole, and adding the same price length to the breakout price of the flag. In this case, the flag breakout has opened the door for the price to move towards the considerable psychological number of $5,000.
Momentum RSI Reading
The $5,000 price projection is also supported by positive momentum readings. The RSI has printed consistent readings above the mid-level 50, signaling that we have bullish momentum behind the current rally. In addition, ETH prices are above the critical 200-day EMA, which also supports the bullish case scenario.