Ethereum (ETH) Price: Technical Bull Flag Pattern Suggests Possible $5,500 Target

TLDR

• Ethereum displays a bull flag pattern on daily charts, suggesting a potential breakout above $5,500
• BlackRock recently sold 59,606,000 ETH valued at approximately $254.43 million
• ETH maintains strong support around $4,100 despite institutional selling pressure
• Ethereum continues to outperform Bitcoin during recent market uncertainty
• Jerome Powell’s upcoming Jackson Hole speech could be a catalyst for ETH reaching $5,000

Ethereum is showing resilience in the cryptocurrency market despite recent pullbacks. The second-largest cryptocurrency by market capitalization is currently trading around $4,268, consolidating beneath key resistance levels while maintaining critical support zones.

Recent technical analysis from crypto analyst Javon Marks indicates that Ethereum has formed a textbook bull flag pattern on the daily chart. This formation typically signals a continuation of the previous uptrend after a period of consolidation.

$ETH (Ethereum) looks to be bull flagging here right under its All Time Highs with its MOMENTUM ON THE RISE!

A BREAKOUT CAN SEND PRICES ABOVE $5,500+ ⚡️… pic.twitter.com/xPdtbc0znl

— JAVON⚡️MARKS (@JavonTM1) August 20, 2025

The pullback from recent highs has been orderly, with price action contained within a defined channel. Historical precedent suggests this structure is often followed by renewed strength once resistance is broken.

If Ethereum confirms a breakout from this pattern, analysts project a potential move towards $4,800 in the short term. However, failure to hold above $4,200 could dent bullish sentiment and possibly lead to further retracement.

The risk-reward dynamic is creating anticipation for Ethereum’s next decisive move. A confirmed breakout could see ETH rise above $5,500, putting it within reach of previous all-time highs.

Technical Strength Amid Selling Pressure

What’s particularly noteworthy about Ethereum’s current price action is its ability to maintain higher lows during corrections, even as selling waves impact the broader market. This characteristic is viewed as a sign of underlying strength.

The chart structure remains bullish as long as the bull flag pattern stays intact. While short-term caution is warranted, the technical picture suggests a continuation of the uptrend.

This setup supports a positive outlook for Ethereum in 2025, with projections of growth beyond current levels. The consolidation phase appears to be building pressure for an eventual breakout.

Market sentiment currently appears divided between those supporting a bullish breakout scenario and others concerned about institutional selling pressure affecting short-term price action.

BlackRock’s Major ETH Sale

Adding complexity to Ethereum’s market dynamics, BlackRock recently sold over 59,606,000 ETH valued at approximately $254.43 million. This substantial move by the world’s largest asset manager has naturally raised questions about potential short-term pressure on Ethereum’s price.

Market observers are split on interpreting this sale. Some view it as simple profit-taking following Ethereum’s recent rally, while others see it as a potential signal of declining institutional demand.

Despite this bearish development, the overall technical formation for Ethereum remains intact. Institutional actions may influence market sentiment, but they rarely determine long-term direction on their own.

Ethereum’s current price trajectory appears more dependent on chart performance and retail investor conviction than on a single sell-off, even one of this magnitude from a major institutional player.

Ethereum Price on CoinGecko

In summary, Ethereum stands at a pivotal point with competing bullish and bearish forces at play. The technical configuration favors an upside break if key resistance levels are breached in the near future.

While BlackRock’s sale adds pressure, it doesn’t negate Ethereum’s long-term bullish prospects. The $5,500 target remains reasonable from a technical perspective if current support levels hold.

The next significant catalyst for Ethereum could be Federal Reserve Chair Jerome Powell’s upcoming Jackson Hole speech. Market participants are closely watching for any shifts in monetary policy that could impact risk assets.

A dovish tone from Powell could potentially trigger a risk-on sentiment, benefiting cryptocurrencies and possibly propelling Ethereum toward the psychological $5,000 level. Conversely, a hawkish stance might test ETH’s support at $4,100.

Key levels to watch include the breakout zone around $4,800, the psychological target of $5,000, and the critical support at $4,100. How Ethereum interacts with these price points will likely determine its short-term trajectory.

Beyond price speculation, Ethereum continues to serve as the foundation for most of cryptocurrency’s practical innovations, including DeFi protocols, NFT marketplaces, and Layer 2 scaling solutions.

This fundamental value proposition helps explain why Ethereum can maintain strength even during uncertain macroeconomic conditions. When institutions invest in crypto, they’re increasingly betting on Ethereum’s network effects and its role as the infrastructure for decentralized finance.