- Ethereum broke out of its sideways range on July 21, eventually establishing a quarter-to-date high at $280.76.
- The breakout move also confirmed a Bullish Flag pattern, a continuation signal that occurs as a brief pause following a significant price move higher.
- It has now set Ethereum en route to its ideal price target near $350. More explanations below.
Ethereum behavior over the last four months continues to point to an overall jump to higher prices.
The second-largest cryptocurrency (by market cap) surged by more than 200 percent from its mid-March nadir. Its rally meanwhile saw a parabolic upside move, followed by an overstretched period of consolidation, and an uptrend continuation later.
The entire pattern resembles that of a Bull Flag, a technical indicator that occurs as a brief pause after an asset’s significant price jump. The preceding uptrend is called a Pole – as in a flagpole, while the Bull Flag resembles a flag tied on the pole itself.
Ethereum pole and bull flag pattern stand confirmed. Source: TradingView.com
ETH confirmed the Bull Flag only after its price broke above its downward sloping consolidation, as shown via red in the chart above. Other factors that confirmed the pattern included a preceding uptrend, lesser than 50 percent downside retracement, and a move above the Flag resistance on rising volumes.
The move upside led Ethereum to establish its quarter-to-date high at circa $280. The said level, on multiple occasions in the past two years, capped the cryptocurrency from extending its bull runs. The only exception was in June 2019, whereby ETH/USD broke above $280 to its YTD high at $363.18.
But the price fell back below it due to growing selling pressure across the cryptocurrency market.