#Ethereum has bounced above $2,570, forming a bullish flag pattern with a 33% upside potential. Derivatives data suggest a breakout toward $3,577.
As Bitcoin reclaims $109,000, Ethereum starts the weekend on a positive note, trading at $2,570. With a bounce off the 200-day EMA, Ethereum hints at a potential double-flat breakout that could result in a price surge of over 30%.
Ethereum Price Analysis
Ethereum continues to consolidate sideways on the daily chart between the 38.20% and 50% Fibonacci retracement levels, which are $2,395 and $2,699, respectively.
Following a 50% surge in early May, Ethereum has completed a bull flag pattern. The 200-day EMA aligns with the lower boundary of the flag, further supporting the bullish setup.
Additionally, growing underlying bullishness has increased the likelihood of a positive crossover between the 50-day and 100-day EMAs.
Based on the bull flag pattern and Fibonacci levels, a potential breakout could lead to a 33% rally toward $3,577. This would surpass the 78.6% Fibonacci level at $3,436, signaling strong upside potential.
Ethereum’s bounce from the 200-day EMA, marked by a long-tailed doji candle on Sunday, reflects strong investor confidence. However, short-term consolidation has reduced trend momentum, as a declining RSI trend line indicates.
As Ethereum maintains a sideways movement, the falling RSI line reveals a hidden bearish divergence. A close below the 38.20% Fibonacci level could result in a retest of the 50-day EMA at $2,213.
ETH Derivatives Anticipate Breakout Rally
Despite the consolidation, bullish sentiment in the derivatives market continues to build. According to CoinGlass data, Ethereum open interest has risen by 2.73%, reaching $32.93 billion.
A short-term pullback in the funding rate to 0.0034% suggests a minor dip in bullish momentum. However, recent 12-hour liquidations have wiped out $17.84 million in bearish positions, reinforcing a bullish environment.
Overall, CoinGlass data supports a bullish narrative, indicating an anticipated upside continuation.
