Ethereum (ETH) has surged over 15% after dipping to a recent low near $3,435 two weeks ago. Currently trading above $3,900, ETH is showing promising early signs of a bullish continuation pattern, supported by key technical indicators. Market watchers are closely monitoring whether Ethereum can sustain this momentum and push toward the $4,500 level before October ends.

### ETH Forms Bull Flag Pattern Above Key Support

Ethereum is currently trading within a bull flag pattern—a consolidation phase often observed during an uptrend. This pattern developed after ETH climbed from its April low near $2,500 to an August peak around $4,950. The latest price rebound took place near the lower boundary of this flag, close to the $3,500 mark.

Importantly, this zone aligns with the 200-day Exponential Moving Average (EMA), a critical long-term support level that has previously underpinned Ethereum’s uptrends. A decisive move above the upper boundary of the bull flag channel could propel ETH toward the $4,450–$4,500 range.

Additionally, analysts have identified a double bottom pattern, reinforcing the bullish outlook. This setup suggests the next significant resistance lies near $4,750, though reaching this level will depend on sustained buying pressure and momentum.

### Historical Trends Support Upside Potential

Data from Glassnode shows that each time ETH stabilizes around its mean value, the price tends to advance toward the +1σ band, currently near $5,000. Similar rebounds were observed in early 2021, mid-2023, and early 2024. As of now, ETH remains above this important support band, indicating the market is more likely in a correction phase within a broader uptrend rather than entering a reversal or steep decline.

### Analysts Eye $4,500 as a Short-Term Target

Prominent traders and analysts, including Luca and FOUR, have identified the $4,500 level as a key short-term target. According to Luca, ETH is holding above a crucial “weekly bull market support band.” Should this support remain intact, a breakout toward $4,500 is likely.

Meanwhile, FOUR’s analysis highlights a neckline resistance around $4,750 as the next area of interest following a potential move above $4,500. Testing this resistance will hinge on ETH maintaining its current momentum without experiencing a breakdown.

A successful move beyond $4,500 could also trigger a bull flag breakout, potentially targeting a higher level near $5,200 in the coming month.

### Breakdown Risk if Key Support Fails

Despite the bullish setup, traders should remain cautious of the critical support area near $3,550. This zone encompasses both the bull flag’s lower boundary and the 200-day EMA support. A drop below this level could signal a breakdown of the pattern, potentially pushing prices down toward the $3,000–$3,200 range.

Such a move would invalidate the current bullish structure and likely delay any further upward rally attempts. So far, buyers have consistently defended this support, but a loss of momentum or negative shifts in broader market sentiment could change the outlook.

### Conclusion

Ethereum’s recent price action suggests a cautiously optimistic outlook as it trades within a bull flag pattern above critical support levels. The $4,500 price point remains a key target for bulls, with an eye on potential resistance near $4,750. However, maintaining support near $3,550 is crucial to sustaining this bullish momentum. Traders are advised to monitor volume and trend confirmations closely before committing to positions in anticipation of a breakout.
https://coincentral.com/ethereum-shows-recovery-signs-with-technical-setup-pointing-to-4500/