Ethereum’s price chart is displaying bullish patterns that suggest a breakout from its recent bearish trend. On-chain data and analyst insights indicate ETH might be primed for a price surge in the short term, fueled by expanding DeFi applications and increased institutional investment. 2023’s Pattern: A Potential Blueprint? JavonTM1 highlights a recurring pattern from 2023 that mirrors Ethereum’s current trajectory – forming rounded bottoms, followed by significant upward price movement. This history suggests a larger-scale rally could be in the works, potentially pushing ETH to new highs. Falling Wedge Formation: A Signal for Upside The formation of a falling wedge pattern on the daily chart is a strong bullish signal. This pattern, defined by two converging trend lines that converge towards a common point, typically signals a weakening downward momentum and often leads to an upward breakout. Ethereum’s price has been forming this wedge for weeks, with lower highs and lower lows. This wedge will be considered completed when ETH breaks above the upper trend line and exhibits increased volume. The bullish pattern suggests Ethereum could rally to around $3,250, based on the vertical length of the wedge above the breakout level. A Breakout: Technical Targets If price holds up and follows historical patterns, this is a potential upside of approximately 80% from the current price. Ethereum Price Technical Analysis Data: RSI & CVD The Relative Strength Index (RSI) for Ethereum is currently at 36.03, indicating oversold conditions in the market. Cumulative Volume Delta (CVD) also reveals selling pressure, with -33.55K. However, recent volume suggests a shift toward positive CVD. If this trend continues, it could signal a breakout of the falling wedge pattern. Exchange Supply: A Sign of Accumulation Ethereum’s exchange supply has decreased to 18.2 million, as holders remove crypto from trading platforms and store it for long-term gains or staking. This trend reflects growing confidence in ETH’s future prospects. Capital Flows Reinforce Optimism New data shows a surge in capital inflows into Ethereum and other blockchain networks. A total of $250.6 Million flowed into Ethereum last week, the highest net inflow recorded over the past seven days. Sonic and Base follow close behind with their respective net inflows. These figures reflect strong investor confidence and increased network activity across major chains. The positive market outlook is bolstered by these bullish signals, suggesting growing interest from traders and institutions. The post Bullish Setup Forms On Ethereum Price With $3,250 Target appeared first on The Coin Republic.