As the weekend ended, Ethereum price saw an increase in bullish momentum. Although it is still early days, it is possible that the bulls will be able to maintain this momentum for a reasonable length of time, thereby pushing sentiment directly towards the positive. If this happens, it will have implications for the price of Ethereum and could spark the next wave of rallies for the cryptocurrency.
Ethereum Price Eyes Next Breakout
Speaking on the recent bullish momentum enjoyed by the Ethereum price, crypto analyst Klejdi Muni revealed that it was a direct result of a bull flag forming on the chart. Not only did the Ethereum price complete this bullish formation, but it was also able to move above the flag, which is very bullish for the cryptocurrency.
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The initial break above the $4,000 resistance shows that the bulls are gaining momentum, and the only obstacle now is maintaining this momentum. If the momentum continues, the next target for Ethereum price to beat would be at the $4,285 level. Once this level is surpassed, it is only a matter of time before Ethereum rallies in what could be another campaign for new all-time highs.
On the other hand, however, there is the possibility that the bears will be able to push prices lower. This would happen if the $3,900 support were to be broken. Such a move could invalidate the entire bullish thesis, especially if they manage to stop the current bullish momentum. Thus, Ethereum bulls need to keep the price above the $3,900 support if they want to maintain the current trajectory.
Optimism is the order of the day
Another crypto analyst, Linofx1, also echoed the bullish sentiments surrounding the Ethereum price. In his own analysis, Lino said that Ethereum price is now bullish after testing a significant daily support level above $3,800.
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With this, there has been the formation of an inverted head and shoulders pattern, which is ultimately bullish for any digital asset. The price managed to break through the neckline and move all the way back to the top before encountering some resistance. This, the analyst explains, shows that there has been a local change in character from bearish to bullish.
From here, the analyst highlights that the next level to cross is the $4,300 level. This is eerily close to Muni’s $4,285 resistance, which holds the key to the next breakout.
Featured image created with Dall.E, chart from Tradingview.com
