Ethereum Eyes $3,000 Breakout Amid Bullish Pennant Formation

Ethereum’s positive cycle in a bear channel aims to reach $3,000 with a bullish pennant in the 4-hour chart.

With a bullish trend in the broader crypto market, Ethereum is scaling new heights and preparing to hit an overhead trendline. The bull run in the biggest altcoin continues despite the minor selling spree observed earlier this month.

Will this recovery run in Ethereum result in a falling channel breakout run above $3,000?

Bull Cycle In Ethereum’s Falling Channel

With a bullish trend in Ethereum, the ETH token has increased by 13.54% in the past seven days. Currently, the token is trading at $2,627, with a minor correction of 1.03% in the last 24 hours.

In the daily chart, the Ethereum price trend shows a strong bullish recovery run, representing a bull cycle within a falling channel pattern. Over the last 19 days, the ETH price has increased by 22.19%, from the bottom of $2,150 to the current market price.

Ethereum price chart

Furthermore, the daily chart warns of an evening star pattern as Ethereum’s intraday pullback takes support at the 50-day EMA. Nevertheless, as the bullish cycle continues in the falling channel pattern, the uptrend will likely hit the 100-day EMA at $2,784.

Ethereum Price Jump Nears With Shift in Futures

According to Crypto Quant, Ethereum’s funding rate has risen after the early September drop. The recovery in funding rate is approaching the 0.01 mark, bouncing back from 0.005.

Shayan, Crypto Quant’s trading manager, explained the significance of increasing funding rates: “The rise in funding rates indicates an increase in buying activity among futures traders, signaling that market participants may be turning more bullish.”

Hence, the rising bullishness is likely to boost the Ethereum price as the broader market recovers.

A Bullish Pennant Holds Ethereum’s Future

In the 4-hour chart, things are looking better for Ethereum as a triangle pattern breakout forms a bullish pennant pattern. Within the triangle of the pennant pattern, the ETH price is trapped between $2,600 and $2,700.

Ethereum price chart

The golden crossover is visible in the 50-100 EMA on the 4-hour chart, and the growing proximity of the 100-200 EMA signals an upcoming potential crossover. An upside breakout will likely occur as the bullish pennant is a trend continuation pattern.

With the breakout rally, the ETH price could challenge the overhead resistance levels at $2,795 and $3,173.

On the other hand, the crucial support for Ethereum is present at $2533 and $2353, based on the 4-hour price chart.

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