Ethereum Price Prepares Next Leap with this Bullish Pattern; Is $2130 Next Target?

For nearly a week, the Ethereum coin price showed multiple failed attempts to surpass the $1920 resistance. The long-wick rejection candles reflect intense supply pressure from above. However, a look at the 4-hour time frame chart reveals the formation of a bullish continuation called Flag. In response to the chart pattern, the ETH price could witness a minor pullback before continuing with the bullish trend.

Also Read: Ethereum (ETH) Price Can Surge to $2750 If It Breaks This Supply Wall

Ethereum Price Daily Chart

• Flag pattern breakout could replenish the bullish momentum in the Ethereum price
• A bullish crossover between the 20-and-50-day EMA could increase the buying pressure in the market 
• The intraday trading volume in Ether is $7.6 Billion, indicating a 9.5% loss.

Source- Tradingview

Under the influence of a bullish flag, the Ethereum price shows a minor pullback from the $1920 resistance. However, this downfall strictly resonates between two downsloping trendlines which can be used to follow the current correction phase.

By press time, the Ethereum price traded at $1860 with an intraday loss of 1.51%. The potential traders looking for a long opportunity must wait for a bullish breakout above the overhead trendline which will be the key signal for uptrend continuation. 

This post-breakout rally could drive the 8.6% rise to hit the next significant resistance of $2020.

Can Ethereum Price Revisit $2130?

In theory, the bullish continuation pattern offers a brief pullback to replenish the exhausted bullish momentum. As the build-up selling pressure gets absorbed, the buyers retake trend control and breach the overhead trendline. This breakout will intensify the bullish momentum and offer an entry opportunity for traders. The potential rally could hit the first target of $2020, followed by $2130.

• DMI: A potential bearish crossover between the DI+ and DI- could prolong a bearish retracement.
• Fibonacci Retracement levels: The current correction phase stays above the 50% FIB level indicating the overall market sentiment remained bullish.