- Ethereum trades at $2,479 near ascending support as bulls aim to defend the trendline and avoid a possible 10.41 percent drop to $2,225.
- A bounce from support could spark bullish momentum toward $2,700 with breakout potential targeting $2,900 and $3,000 levels soon.
- ETH forms a bull flag on the daily chart with a breakout above $2,700 projecting a bullish move toward the $4,000 price zone.
With bulls and bears vying for dominance, Ethereum is lingering at a critical level. The 4-hour chart shows that ETH is now trading at $2,479, which is a rising support. If this support doesn’t hold, cryptocurrency analyst Carl Moon points to a possible breakdown toward $2,200. On the other hand, a bounce here might indicate bullish continuation and maintain the ascending triangle pattern.
Source: Carl Moon
Price action has tested the $2,700 resistance twice, forming a possible double top. This setup follows a strong rally from below $2,000 earlier in May. After reaching the $2,700 mark, ETH consolidated with lower volume, suggesting indecision in the market. The ascending trendline has held firm for several sessions, acting as dynamic support.
Support Holds the Key to Next Ethereum Move
Besides the double top, Carl notes a possible 10.41% drop if the trendline breaks, targeting $2,225. This zone aligns with previous consolidation, hinting at potential demand. However, bulls may step in here, especially if the support prompts a reaction. A bounce could lead ETH back to $2,700. A successful breakout beyond that resistance may push prices higher toward $2,900 or even $3,000.
Volume has dropped during recent price moves. This shows traders remain cautious, awaiting confirmation from key support and resistance. Moreover, the symmetrical setup between ascending support and horizontal resistance reflects a balanced battlefield. No side has secured a clear advantage, so price remains locked in a consolidation range.
Daily Chart Hints at Bull Flag Targeting $4,000
On the daily timeframe, Trader Tardigrade sees a classic bull flag. ETH surged from $1,800 to $2,700, forming a strong flagpole. Since then, price has moved sideways between $2,460 and $2,700, creating the flag portion. Consequently, a breakout above $2,700 would confirm the bull flag and project a target near $4,000.
Source: Trader Tardigrade
This level is calculated by adding the flagpole height to the breakout point. Additionally, the consolidation volume remains low, supporting the bullish case. However, any close below $2,460 would invalidate the pattern. Until then, ETH stays range-bound, with $2,700 acting as the trigger for trend continuation.
