Ethereum (ETH) Shatters Bull Flag Pattern - Is This Rally Built to Last?
Ethereum just ripped through a textbook bull flag formation—sending traders scrambling and skeptics sweating.
The Technical Breakout
ETH's chart setup screamed accumulation. That tight consolidation after a sharp run-up? Classic flag pole. The breakout above resistance? Pure momentum fuel. Volume confirms the move—no fakeout here.
Market Mechanics at Play
Institutional flows are driving this surge. Whale wallets are loading up while retail hesitates. The pattern targets suggest another leg up, but watch for exhaustion at previous highs. Resistance becomes support—that's the game now.
The Sustainability Question
Can ETH maintain this pace? Macro conditions help—weak dollar, yield hunting. But crypto moves fast. Today's breakout becomes tomorrow's profit-taking opportunity. Always does.
One cynical truth: Wall Street finally understands blockchain—they just use it to run the same old pump schemes with fancier jargon.
This isn't just technicals—it's a sentiment shift. ETH leads, others follow. But in crypto, never confuse a good chart with a sure thing.
Will Powell put a stop to this $ETH rally?
If things are looking good for Ethereum, history tells us that this is a healthy sign for the crypto market as a whole. When $ETH powers higher, the altcoins will generally follow.
Therefore, the current $ETH breakout of its recently formed bull flag would appear to be a good omen. That said, a potential black cloud is gathering on the horizon in the form of the Federal Reserve chairman saying no to rate cuts in his Jackson Hole speech later today. If this does happen, wouldn’t $ETH go into a major corrective phase along with Bitcoin and the rest of the crypto market?
ETH dominance rampages
Source: TradingView
ETH dominance is shown in the weekly chart above. It can be seen that dominance has been on a real rampage since April. However, a strong resistance level has been reached at 14%. If the $ETH bulls can help to break through here, the next targets are 16%, 18%, and then 20%.
$ETH breaks out of bull flag
Source: TradingView
As seen in the 4-hour chart for the $ETH price above, the breakout has occurred and has been confirmed, at least in this short time frame. Now the bulls are battling with the slight resistance at $4,325.
The Stochastic RSI indicators are coming to the top, but the RSI indicator below has just broken through the descending trendline. The scene appears to be set for the next leg higher.
$ETH all-time high in sight
Source: TradingView
The weekly view for the $ETH price also looks very good. Although the recent rally did stop just short of a new all-time high, the price has come back to this modicum of horizontal support at $4,300 from where the next, possibly successful assault on the high can take place.
The Stochastic RSI has the indicators bumping along at their top, while the MACD reveals the indicator lines fairly widely apart and on nice upward angled trajectories.
Powell - more impetus or an end to the rally
Will Jerome Powell’s speech around 3 hours from now add impetus to the $ETH charge towards a new all-time high, or will it put the brakes on and end this particular rally?
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
