BlockBeats News, May 21st, the Ethereum daily chart price consolidated between $2,400 and $2,750, forming a bullish flag pattern, with the target set at the resistance zone of $3,000 to $3,100. A bullish flag is a continuation pattern, with the price previously surging quickly from $1,900 to $2,730 (forming the flagpole), and the current price range forming the flag.
If the price breaks above $2,600, it may further rise to $3,600 (calculated by adding the flagpole's height to the breakout point). The key resistance zone is between $3,000 and $3,100. The 200-day Exponential Moving Average (EMA) has provided bottom support for the price. Although the Relative Strength Index (RSI) is still close to overbought territory, it has notably cooled off in recent days. A breakout by ETH with RSI rising and increasing volume may confirm the bullish trend; however, a drop below $2,400 could invalidate the flag pattern.
Additionally, crypto trader Merlijn pointed out that the 50-day Simple Moving Average (SMA) and the 200-day SMA have formed a golden cross on the 12-hour chart, potentially further supporting ETH's impending breakout. It is important to note that the golden cross on the 12-hour chart is less reliable compared to the daily chart.
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