- Ethereum forms a bullish flag below $3,500 after breaking out of a megaphone pattern on the 4H chart.
- Trading volume rose 17.17% to $36.69B as ETH gained 4.94%, showing strong buyer momentum.
- RSI remains neutral and price holds $3,350 support, keeping breakout potential toward $3,800–$4,000 intact.
Ethereum is showing renewed strength on the 4-hour chart, following a confirmed breakout from a megaphone pattern. The price is consolidating in a bullish flag formation just below key resistance. This setup is often associated with continuation patterns. At the time of writing, Ethereum was trading at $3,180.05, posting a 4.94% gain over 24 hours.
Megaphone Completion Followed by Flag Formation
According to analysis prepared by Alex Clay, Ethereum has completed a megaphone pattern, a formation typically defined by higher highs and lower lows, suggesting increasing volatility.
ETH has since broken out of that structure, signaling the end of indecision and the beginning of a directional trend. The move pushed the price from below $2,500 to a peak above $3,200, maintaining higher intraday lows.
Volume during this breakout phase supported the strength of the move, confirming buyer momentum. The 24-hour trading volume increased by 17.17% to $36.69 billion, and the market cap reached $383.87 billion.
Bullish Flag Consolidation Points to Breakout Potential
After breaking out of the broadening wedge, Ethereum formed a bullish flag, a downward-sloping channel often observed in strong uptrends. The pattern has developed just beneath resistance near $3,500, a key level defined by past price action.
Volume has declined during the flag’s formation, consistent with the typical characteristics of such consolidation. The RSI remains neutral, within the 50–60 range, suggesting room for continued momentum. A volume surge and close above the flag’s upper boundary may confirm the breakout and target $3,800 or $4,000 next.
According to the current chart structure, traders are watching $3,350 as the short-term support. A breakdown below this level could invalidate the bull flag setup and suggest a return to lower ranges. For now, Ethereum maintains a bullish bias with traders awaiting confirmation of the next breakout move.
