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Ethereum Bull Flag Pattern Signals Potential Breakout to New All-Time High
Ethereum (ETH) is showing signs of bullish momentum after forming a significant continuation pattern on its weekly chart. Following a recent dip to $4,329 on October 9, ETH’s price is at a critical juncture that could potentially spark a rally toward new all-time highs in the coming months.
ETH Faces Resistance but Holds Key Support Zones
ETH price fell approximately 4% intraday, retreating from the resistance level near $4,600 after bulls struggled to break through. This pullback trimmed about 9% off the token’s weekly high of $4,753, which was driven by project-specific catalysts and broad market optimism fueled by October’s historically bullish sentiment for cryptocurrencies.
The month of October is often marked by strong seasonal gains, and factors such as inflows into spot Ethereum ETFs and dovish expectations from central banks have provided macro tailwinds. However, Ethereum’s failure to surpass the $4,700 resistance level twice in 30 days sparked profit-taking and market-wide liquidations, compounded by a strengthening U.S. dollar, leading to downward pressure on ETH.
Bull Flag Pattern and Technical Indicators Signal Strength
Despite the recent pullback, Ethereum has formed a giant bullish flag pattern on the weekly chart—an encouraging technical signal indicating consolidation before another potential upward move. ETH remains above all major simple moving averages (SMAs) on the weekly timeframe, with shorter-term SMAs crossing above longer-term ones, a classic bullish setup.
The Relative Strength Index (RSI) at 61 indicates that ETH is not yet overbought, suggesting room for further upside before a significant correction may occur.
Golden Cross and Key Resistance Levels to Watch
On the daily chart, ETH recently confirmed a golden cross, with the 50-day moving average crossing above the 200-day average—another long-term bullish indicator. The critical resistance to watch is the $4,500 level, which aligns with the upper boundary of the bull flag pattern.
A clean breakout above this zone could propel Ethereum initially toward $5,000 and potentially as high as $8,100, based on measured move targets derived from the flagpole’s height.
Caution Ahead: Support Levels Crucial for Bullish Outlook
Market analyst Ted Pillows highlights the importance of Ethereum holding the $4,250–$4,300 support zone to maintain its bullish structure. A decisive break below this range could invalidate the bullish pattern and open the door for a deeper correction toward $4,000 in the near term.
