Currently, Ethereum is fluctuating inside a bull flag on its daily chart. If you go back to November 2024, the coin fluctuated inside a similar bull flag pattern, and thereafter sprang into action. During the 2024 bull flag, ETH fluctuated close to the support level at $3,044, and once it hit this support level, the coin bounced off of it to reach $4,107 very quickly.
So what’s the big deal?
There is a bull flag currently forming on the Ethereum chart, and a similar situation that was seen back in November 2024 seems to be appearing on the horizon. When you compare how the RSI responded during the formation of the bull flag in 2024, you would see that the RSI went into the overbought zone and then fell back into the normal range before hitting $4,000+.
ETH/USDT 1-Day (Source: Tradingview)
The current situation is no different, as the RSI is back in the normal range after being overbought. This makes one wonder whether we are set to see some ETH fireworks. Given that ETH reciprocates its previous price surge by the same margin shown by the blue grid, there is a high chance that the coin will reach almost $3,500.
A popular trader who goes by the pseudonym Merlijn the Trader supported this bullish sentiment. The trader saw a golden cross developing on the chart and expects ETH to cross $3,000.
A Golden Cross occurs when the shorter Exponential Moving Average (EMA) crosses the longer EMA from below. The EMA is a line that represents the average performance of the security or commodity. When the Golden Cross happens, the market usually comes alive, and the price of the coin appreciates. In contrast to the Golden Cross, the Death Cross is a bearish indication where the shorter EMA crosses the longer EMA from above.
ETH/USDT 1-day Chart (Source: TradingView)
Currently, the 50-day EMA is approaching the 200-day EMA from below. If these lines intersect, there is a high probability that the ETH could surge, based on its recent historical behavior.
