Ethereum Price Breaks Out of Bull Flag Pattern, Eyes $3,250 Target

Ethereum's price is poised to rally another 20% in the coming week, extending its recent rebound. Since June, the cryptocurrency has already seen a gain of approximately 85%. The Ethereum price chart shows that it is breaking out of its prevailing bull flag pattern.

A bull flag pattern forms when the price trades inside a parallel, descending channel after undergoing a strong rally. This setup typically resolves when the price breaks above the upper trendline and jumps by as much as the previous uptrend's height. Ethereum has entered the breakout stage of this pattern after breaking above the upper trendline.

The potential upside target for Ethereum is around $3,250, a level that served as strong resistance in January 2026. ETH's close above the key exponential moving averages, including the 50-week and 200-week ones, further supports this upside outlook.

However, there are some cautionary signs. The weekly relative strength index (RSI) for Ethereum may rise above the overbought threshold of 70 in the coming days. Nevertheless, an overbought RSI doesn't always precede price corrections. ETH's price could continue its rally toward the bull flag target while undergoing lengthy consolidation periods.