Ethereum has been trading in a narrow range between $2,650 and $2,750 over the past week, causing uncertainty in the short term. The price action has been indecisive as bulls struggle to break above the key $2,800 level, which could determine Ethereum’s next move. Despite the unclear long-term outlook, Ethereum is currently at critical demand levels, facing consistent selling pressure that has kept price movements subdued.
Investors are feeling anxious amidst the volatility, especially as Ethereum shows signs of weakness compared to Bitcoin. Some analysts are concerned that if ETH fails to hold above $2,600, a deeper correction may be on the horizon. However, there are also optimistic voices in the market, suggesting that Ethereum might be forming a long-term bullish structure.
A recent technical analysis by crypto analyst Jelle indicates that ETH is still within a multi-year ascending triangle pattern, historically signaling potential for a breakout. If Ethereum can maintain its current levels and surpass the $2,800 mark, it could trigger a recovery towards the crucial $3,000 resistance level. All eyes are now on Ethereum’s next moves, as the upcoming days are expected to be pivotal in shaping its short-term trajectory.
Ethereum is currently caught between significant liquidity levels of short-term demand and supply, with price action confined within a tight range. The market is divided, with some anticipating further correction and prolonged consolidation, while others predict a potential rally in the near future. Traders are eagerly awaiting a confirmation of either a breakout or breakdown to determine the next trend.
To establish bullish momentum, Ethereum needs to push above the $2,700 mark and hold it as support, signaling a positive shift in sentiment. However, reclaiming the key resistance levels at $2,800 and $3,000 will be crucial for a confirmed recovery phase. Failure to reclaim these levels could lead to a deeper correction towards lower demand zones around $2,500.
Jelle’s analysis highlights that ETH is still within a massive ascending triangle pattern, with previous fakeouts on both the upside and downside. With downside liquidity now absorbed, a potential comeback is expected, suggesting that Ethereum might soon attempt to regain lost ground.
The next few days will be critical in determining whether Ethereum can break above the $2,800 mark and sustain its momentum towards the $3,000 level. If selling pressure persists, ETH may remain in a consolidation phase or experience further downside movements. Traders are closely monitoring Ethereum’s price action to gauge whether a bullish reversal is imminent or if bears will continue to dominate the market.
In conclusion, Ethereum’s short-term direction remains uncertain as it navigates key resistance and support levels. Traders and investors are advised to closely monitor price movements and key levels to make informed decisions in this volatile market environment.