Ethereum price is once again making a push to break through the crucial resistance zone above $2600 for the third time this month. Despite previous attempts, the price has struggled to maintain momentum, with volume remaining relatively stable. However, the current situation suggests a potential shift, as a decrease in volume could impact the ETH price rally. The historical chart indicates that the price has entered an accumulation zone, which may delay a breakout for the next few months.
The logarithmic regression band is a technical indicator that helps identify trends, particularly when growth rates fluctuate rapidly. These bands serve as markers for price movements, highlighting resistance and support levels. Currently, Ethereum’s price has entered these bands, indicating a period of potential consolidation. Past data suggests that the token could spend an extended period within these bands before initiating a significant bullish trend.
Historical data also indicates that Ethereum’s price typically experiences a period of consolidation before embarking on a strong bullish run and reaching a new all-time high. With the price already consolidating for nearly four months, a similar pattern may be expected in the coming months.
Despite the recent recovery, Ethereum’s price has struggled to break above the bullish range. The weekly chart shows a v-shaped recovery, but the price has failed to surpass the ascending trend line that has been in place since mid-2022. Current technical indicators suggest a potential pullback in the price.
Ethereum is currently trading between the 50-day and 200-day weekly moving averages, with a bearish crossover or Death Cross looming. Additionally, the weekly Directional Movement Index (DMI) has not confirmed a bullish crossover, as the -Di remains in a strong downward trend. These indicators point to a possible pullback in the price, with levels likely to remain below $2500 for the time being. However, a breakout above this range could negate the bearish outlook and pave the way for further gains in the future.