Coming out of the weekend, the Ethereum price has seen a rise in its bullish momentum. While it is still in its early stages, there is the possibility that the bulls are able to hold this momentum for a reasonable amount of time, thereby pushing sentiment straight into the positive once again. If this happens, then it carries some implications for the Ethereum price and could trigger the next wave of rallies for the cryptocurrency.
Ethereum Price Eyes Next Breakout
Speaking on the recent bullish momentum that the Ethereum price has enjoyed, crypto analyst Klejdi Muni revealed that this was a direct result of the formation of a bullish flag pattern on the chart. Not only did the Ethereum price complete this bullish formation, but it was also able to break above the flag, something that is very bullish for the cryptocurrency.
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The initial breakout above the $4,000 resistance shows that bulls are picking up momentum, and the only hurdle now is to keep this momentum going. If the momentum is sustained, then the next target for the Ethereum price to beat would be at the $4,285 level. Once this level is broken, then it is only a matter of time before Ethereum rallies in what could be another campaign for new all-time highs.
On the flip side of this, though, is the possibility that bears would be able to drag the price back downward. This would happen if the support at $3,900 were to be broken. Such a move could invalidate the entire bullish thesis, especially if they are able to stop the current bullish momentum in its tracks. Thus, Ethereum bulls must keep the price above the $3,900 support if they want to maintain the current trajectory.
Bullishness Is The Order Of The Day
Another crypto analyst, Linofx1, has also echoed the bullish sentiments surrounding the Ethereum price. In their own analysis, Lino expressed that the Ethereum price was now bullish after testing a significant daily support level above $3,800.
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With this, there was the formation of an Inverted Head and Shoulders pattern, which is ultimately bullish for any digital asset. The price was able to complete a breakout from the neckline, rising to the top before encountering some resistance. This, the analyst explains, shows that there has been a local change of character from bearish to bullish.
From here, the analyst highlights that the next level that needs to be broken is the $4,300 level. This is eerily close to Muni’s $4,285 resistance that holds the key to the next breakout.
Featured image created with Dall.E, chart from Tradingview.com