Ethereum (ETH) continues to show resilience in the face of recent selling pressure and market volatility, with the price holding above the $4,400 level. However, the current price action has entered a consolidation phase, with bulls struggling to reclaim higher levels and momentum appearing subdued. This has led to speculation among analysts, with opinions divided on ETH’s next move.
Some market participants anticipate Ethereum retracing below $4,000, citing weakening momentum and resistance in the $4,600–$4,800 range. They argue that a correction could create healthier conditions for the next upward trend. On the contrary, more optimistic analysts view the consolidation phase as a potential launchpad for a breakout, envisioning ETH surpassing the $5,000 mark in the near future if demand remains strong.
Supporting the bullish case, data from CryptoQuant indicates that despite Ethereum’s recent correction from its all-time high, demand for ETH remains robust. Exchange reserves continue to decrease as investors withdraw their holdings, while onchain activity reflects ongoing accumulation. This divergence between price volatility and underlying demand suggests that Ethereum’s fundamentals remain solid.
According to CryptoQuant analyst Crypto SunMoon, Ethereum continues to attract strong investor interest despite the price correction. While ETH has retreated from its peak levels into a consolidation phase, its fundamentals remain strong. Data shows a clear contrast between Ethereum and Bitcoin reserves on Binance, with Ethereum reserves consistently decreasing. This trend suggests that market participants are actively accumulating ETH, positioning themselves for future gains.
This trend aligns with the broader capital rotation from Bitcoin to Ethereum that has been observed recently. Reports of whales moving significant amounts of capital into ETH further support the idea that institutional and whale interest in Ethereum is growing. Despite short-term price fluctuations, the demand dynamics indicate that Ethereum’s role in DeFi, Layer 2 scaling, and institutional adoption is attracting capital.
The resilience of Ethereum’s demand during this corrective phase signals strength beneath the surface. If accumulation continues, the ongoing consolidation period could pave the way for Ethereum’s next breakout, potentially propelling prices towards the $5,000 level and beyond.
In terms of price analysis, Ethereum is currently trading around $4,440, holding above key support levels amidst recent volatility. The chart shows ETH consolidating after retracing from its recent all-time highs near $4,900. The 50-day moving average continues to act as immediate support, coinciding with the current trading zone.
The price action indicates indecision as bulls defend the $4,400–$4,300 zone, now a critical demand area. A breakdown below this range could lead to further downside towards $4,000 and the 100-day moving average, serving as the next support level. Conversely, reclaiming momentum above $4,600 could set the stage for another test of the $4,800–$5,000 region.
From a technical standpoint, the consolidation phase appears constructive as ETH trades above its 200-day moving average, highlighting its long-term bullish structure. While selling pressure persists, fundamentals and recent accumulation trends by whales provide a supportive backdrop. The upcoming sessions will be crucial, with ETH needing to maintain current support levels to avoid a deeper retracement and prepare for its next breakout attempt.
In conclusion, Ethereum’s resilience and strong demand during the corrective phase indicate a positive outlook for the cryptocurrency. With accumulating interest from investors and whales, Ethereum’s potential for a breakout remains high, with the $5,000 mark as a key target. As the market continues to evolve, Ethereum’s fundamentals and technical indicators suggest a potential bullish trajectory in the near future.