- Ethereum weekly bull flag pattern hints at a potential 76% breakout toward $7,245 if resistance at $4,440 is cleared.
- Despite market fear, technical signals remain positive.
Ethereum price action is setting up for what could be a major bullish breakout, as technical indicators point toward renewed strength despite current market caution.
Ethereum Price Eyes 76% Upside Potential
ETH is currently trading around $4,120, down about 16.7% from its all-time high of $4,946 reached in late August. The token slipped as low as $3,574 over the weekend following a broader market sell-off triggered by U.S. President Donald Trump’s new tariffs on Chinese goods. The move weighed on global markets, sparking a wave of risk aversion reflected in the Crypto Fear & Greed Index, which still reads “fear.”
However, while broader sentiment remains cautious, Ethereum’s technical chart shows a potential turning point. The weekly chart reveals a multi-month bull flag pattern — a classic signal that often precedes a major upward continuation. If confirmed, this pattern could push ETH up by as much as 76%, targeting levels near $7,245.
Key Support and Resistance Zones
ETH is currently retesting its lower flag boundary near $3,875, a level acting as immediate support. Maintaining this area is vital for preserving the bullish structure. A breakout above $4,440, the upper trendline of the flag, would validate the setup and likely open the door for a strong rally toward $4,600 in the near term and potentially a new record high afterward.
Technical indicators are increasingly aligning with the bullish outlook. The Aroon Up stands at 42.86%, while the Aroon Down is at 0%, suggesting sellers are losing control. The RSI has also cooled to neutral territory, indicating that ETH still has room to climb before facing overbought pressure again.
That said, traders should watch for short-term volatility. The liquidation heatmap shows a dense cluster of long liquidations between $4,100 and $4,250, a zone that could serve as temporary resistance before bulls fully regain momentum.
A Breakout Could Redefine Ethereum’s Trajectory
If Ethereum holds above $4,250 and breaks out decisively, it may mark the beginning of a significant upward phase, potentially setting a course toward new highs. While market conditions remain tense, Ethereum’s chart structure and improving technical strength suggest that the world’s second-largest cryptocurrency could soon reclaim its bullish edge.
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