Ethereum price bullish pattern points to a 35% surge

| ETH price chart | Source: crypto.news

The daily chart shows that Ethereum remains in a strong bearish downtrend after peaking at $4,100 last year. It continues to trade below both the 50-day and 200-day Exponential Moving Averages and below the key support level at $2,140. This support is notable since it was the neckline of the triple-top pattern on the weekly chart.

On the positive side, Ethereum has formed a bullish divergence pattern as the two lines of the MACD continue to rise. The Relative Strength Index has also moved slightly above the descending trendline.

The coin has also formed a giant falling wedge pattern, comprising two descending and converging trendlines. As these lines approach convergence, there is a likelihood of a strong bullish breakout in the near term. If this happens, the next level to watch will be $2,140, the lowest swing in August and September last year. This target is about 35% above the current level.