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Ethereum price readies for lift-off towards $4900 amid bull flag breakout

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FXStreet in Market News 12 180092
October 31, 2021 14:45

content provided with permission by FXStreet

  • ETH price is breaking higher once again, eyes fresh lifetime highs.
  • A bull flag confirmation on the 4H chart calls for a fresh rally.
  • RSI points south while above 50.00, keeping the upside intact.

Ethereum, the no.2 widely traded cryptocurrency, is picking up fresh bids above $4300, reversing a temporary reversal seen on Saturday.

ETH price saw a brief correction from all-time highs of $4462 a day before, although the bulls are back in the game amid the ongoing optimism surrounding the Ethereum 2.0 Altair Beacon Chain update, which was done successfully with 98.7% of nodes upgraded as of early Friday. 

At the press time, ETH/USD is trading virtually unchanged on the day, defending the $4300 mark, having recorded a fifth straight weekly advance.

Ethereum price eyes additional upside, with a bull flag in play

Ethereum’s four-hour chart shows that the price has broken to the upside from a bull flag formation.

The recent rally that kicked in on Friday followed by the pullback carved out the bullish continuation pattern on the said time frame.

A four-hourly candlestick closing above the falling trendline resistance at $4337 yielded the upside breakout, opening doors for an explosive rally towards the pattern target of $4910.

However, ETH bulls will need to clear the all-time highs of $4462 first to unleash the additional upside.

The next relevant topside barrier is aligned at the $4600 round figure.

The Relative Strength Index (RSI) has eased from higher levels but remains well within the bullish zone, keeping ETH buyers cheerful.

ETH/USD: Four-hour chart

Should the corrective downside gather steam in the upcoming sessions, then the pattern resistance now support at $4321 will cave in on a sustained basis.

ETH bears will then aim for the upward-pointing 21-Simple Moving Average (SMA) at $4273 if the selling pressure intensifies.

The last line of defense for ETH bulls is the falling trendline (pattern) support at $4220. Acceptance below the latter will invalidate the bull flat formation, triggering a fresh downtrend in ETH price.