Ethereum Price Shows Bullish Potential as $3,090 Holds Key Support

TLDR

Table of Contents

Ethereum’s price is holding above $3,100, signaling potential for a bullish breakout.
On-chain data shows reduced selling pressure from long-term holders.
A daily close above $3,130 could signal a move toward $4,000 for Ethereum.
Ethereum’s price remains compressed, with a breakout potential above key resistance levels.

Ethereum’s price has been quietly consolidating above $3,100, forming a bull flag pattern that hints at a potential breakout. With support holding firm above the key $3,090 level, the stage is set for a possible continuation of the recent upward trend. On-chain data also shows reduced selling pressure from long-term holders, suggesting that a breakout above $3,130 could lead Ethereum toward a fresh rally.

Ethereum Price Could Be Silently Nearing a Breakout

Ethereum’s price has remained relatively quiet over the past few days, consolidating above the crucial $3,100 mark. While the market has experienced modest gains, Ethereum’s price action indicates a period of compression, often a precursor to a breakout. The cryptocurrency has been trading within a tight range, showing resilience and strength rather than exhaustion, suggesting that it may soon be preparing for its next move.

The key to the potential breakout lies in the price structure, which is forming a bull flag pattern. This pattern often signals a continuation of the previous upward trend, given the price remains above critical support levels. As of now, the $3,090 level has been holding firm, acting as solid support during pullbacks. If Ethereum can maintain this level, the stage will be set for a potential bullish breakout.

Ethereum Bull Flag Structure Indicates Continuation

The recent price movement of Ethereum suggests the formation of a bull flag. A bull flag pattern typically forms after a strong upward movement when the price consolidates within a narrow range before resuming its upward trajectory. This pattern is often seen as a bullish signal because it reflects a temporary pause rather than weakness.

As long as Ethereum remains above $3,090, this flag pattern should hold intact. The price has repeatedly bounced from this support level, demonstrating that buyers are actively defending it. This compression phase is often followed by a breakout, especially when it occurs near key resistance levels. If Ethereum manages to close above $3,130 on a daily basis, it would signal the end of consolidation and the beginning of the next bullish move.

Easing Selling Pressure Supports Bullish Outlook

On-chain data offers further support for the bullish outlook on Ethereum. Data from Holder Net Position Change shows a decrease in the selling pressure from long-term holders. Over the past 24 hours, net selling has dropped by approximately 8.4%, signaling that the pace of distribution is slowing. This is a crucial development because it suggests that holders are not rushing to sell their positions, even as Ethereum approaches key resistance levels.

The shift in selling pressure is significant because it indicates that holders are more likely to wait for the price to break higher rather than panic-sell. This behavior is commonly observed during late-stage consolidation, where selling pressure eases and buyers begin to step in. As Ethereum continues to compress near resistance, the likelihood of a breakout increases, especially if the selling pressure continues to decrease.

Breakout Targets: $3,130 and Beyond

The critical level to watch for Ethereum’s next move is $3,130. A clean daily close above this level would confirm the breakout from the bull flag pattern. This would suggest that consolidation is coming to an end, and buyers are regaining control. If this happens, the next resistance target is around $3,390, and breaking this level could propel the price toward the $4,000–$4,020 range.

However, should Ethereum drop below $3,090 or even $2,910, the bullish structure would weaken. A close below $2,910 would invalidate the bull flag pattern, leading to a shift in market sentiment. As the price holds above $3,090, Ethereum’s bullish setup remains intact, and the market is watching for confirmation of a breakout.