The chart shows Ethereum forming a bullish flag pattern after a strong upward rally, indicating potential continuation of the bullish trend. The recent price structure reflects a consolidation phase in a downward-sloping flag, following a significant impulsive move.
Key highlights:
The sequence of Higher Highs (HH) and Higher Lows (HL) suggests a shift in trend structure.
The current flag pattern aligns with the textbook characteristics of a bullish continuation setup.
RSI shows previous bullish divergence, supporting the case for upward momentum resumption.
🔸 Outlook: If ETH prints another higher low and breaks above the flag resistance, it may surge toward a new higher high in the $3,000–$3,500 zone.