Ethereum (ETH) price gained 90% the last time this indicator turned bullish

If the present trend of this unique Ethereum price indication continues, Ethereum may rise above $3,600. 

• Ethereum is building a bull flag on the daily chart, with a possible breach above $3,600. 

• If ETH reclaims the two-week Gaussian Channel midline, it might rise by 90%.

On the daily chart, Ethereum’s (ETH) $2,605 price consolidates between $2,400 and $2,750, establishing a bull flag pattern with the target of the $3,000 to $3,100 resistance zone. A bull flag is a continuation pattern formed after a rapid rise from $1,900 to $2,730, with the current range serving as the flag. 

A bullish breakout above $2,600 might target $3,600, which is determined by adding the flagpole height to the breakout point, although the immediate critical region of focus is still between the resistance band of $3,100 and $3,000.

The 200-day exponential moving average (EMA) supports the lower range. The relative strength index (RSI), while still approaching the overbought range, has dramatically cooled in recent days. A breakout in ETH with rising RSI and volume could confirm the bullish trend, whilst a plunge below $2,400 risks invalidating the pattern. 

Can Ether reclaim the Gaussian Channel midline?

On May 20, Ether demonstrated a strong trend shift as it attempted to retake the midline of the two-week Gaussian Channel, a technical indicator used to detect price movements. The Gaussian or Normal Distribution Channel depicts price fluctuations within a dynamic range, adjusting for market volatility.

Historically, when ETH goes over this median, strong rallies occur. In 2023, ETH climbed 93% to $4,000 following a similar crossover, while in 2020, it jumped by 1,820%, igniting a major altcoin boom.

In contrast, a similar setting in August 2022 resulted in an invalidation during a market correction, emphasising the difficulties of depending only on this signal.

Similarly, crypto trader Merlijn observed a golden cross between the 50-day SMA and the 200-day simple moving average (SMA), which could support an upcoming ETH breakout. It is worth noting that the golden cross appears on a 12-hour chart, which is less reliable than a one-day chart. 

Traders exercise caution ahead of a possible ‘range-bound environment.’

Popular cryptocurrency trader XO stated that ETH is stabilising around a “decent” resistance level below $2,800. The trader anticipates a correction if ETH fails to break above $2,800 in the next days. According to the analyst, “I am leaning towards carving out a range-bound environment for at least several weeks, potentially longer, and once again becoming a buyer.” ETH prices are also swinging below the Fibonacci levels, providing a contrarian picture for bulls. According to Cointelegraph, Ether just retested the 0.5 to 0.618 Fib levels, perhaps triggering a short-term decline for ETH. In such a case, the immediate area of support stays between $2,150 and $1,900, potentially stalling the bullish momentum for an extended period.  

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