Ethereum has been fluctuating between $2,650 and $2,750 for the past week, generating uncertainty in the near term. The price movements remain ambiguous as bulls attempt to recover the $2,800 mark, a significant resistance area that may influence Ethereum’s forthcoming direction. Though the long-term perspective remains unclear, Ethereum is operating at vital demand levels, encountering persistent selling pressure that has kept price movements subdued.
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Investors are striving to remain composed amidst volatility, yet anxiety is increasing as Ethereum reveals signs of frailty in contrast to Bitcoin. Some analysts express concerns that if ETH fails to maintain above $2,600, a more profound correction could ensue. Conversely, others hold an optimistic view, proposing that ETH might be establishing a long-term bullish framework.
Crypto analyst Jelle disclosed a technical review on X indicating that ETH still operates within a multi-year ascending triangle, a configuration that has historically suggested substantial potential for a breakout. Should ETH manage to remain above current levels and surpass the $2,800 threshold, it might instigate a rebound towards the critical $3,000 resistance. For now, all attention is directed toward Ethereum’s next move, as the approaching days could be pivotal in shaping its short-term path.
Ethereum Testing Vital Liquidity Levels
Ethereum is presently trading between essential liquidity levels of short-term demand and supply, with price action confined in a narrow range. Over the past week, ETH has settled between $2,650 and $2,750, crafting uncertainty regarding its short-term trajectory. Investors remain split, with some anticipating further correction and a prolonged consolidation period, while others foresee a recovery surge soon. The market is awaiting either a breakout or a breakdown confirmation to establish the next trend.
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Ethereum is striving to exceed the $2,700 mark and uphold it as support, which would be the initial indication of bullish momentum. However, for a validated recovery phase, ETH must reclaim the $2,800 and $3,000 levels. These crucial resistance areas have functioned as strong supply zones historically and are likely to dictate Ethereum’s next significant maneuver. Should ETH fail to regain these levels, a more substantial correction into lower demand around the $2,500 mark could occur.
Jelle’s analysis on X indicates that ETH is still trading within a large ascending triangle, a multi-year bullish pattern. He observed that false breakouts have taken place on both the upside and downside, eliminating liquidity in both directions. With the downside liquidity now extracted, Jelle anticipates a comeback soon, implying ETH might soon endeavor to reclaim lost territory.
If Ethereum succeeds in breaking above the $2,800 mark and maintains its momentum, a movement towards the $3,000 level would be the subsequent target. However, if selling pressure continues to prevail in the market, ETH might remain in a consolidation phase or even face additional declines. The next few days will be critical in determining whether ETH can regain bullish momentum or if a deeper correction is on the horizon.
Price Action Lacks Short-Term Direction
Ethereum is trading at $2,720 after several days of lateral movement beneath the $2,800 threshold, struggling to build momentum for a breakout. Bulls need to intensify their efforts and drive the price above this level promptly to alter sentiment and regain control of price action. The $2,800 threshold has served as a robust supply zone, and surpassing it would pave the way for a shift towards the $3,000 level.
On the downside, defending the $2,700 and even the $2,600 mark is essential for sustaining bullish momentum. If ETH maintains these levels for a prolonged period, it would indicate strong demand and support the likelihood of a recovery surge. A consistent movement above $2,700 would motivate buyers to engage, increasing the probabilities of ETH revisiting higher resistance zones.
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Nonetheless, a failure to uphold above $2,700 could subject Ethereum to additional selling pressure. Should ETH fall below the $2,600 threshold, a deeper correction into lower demand areas around $2,500 might follow. The upcoming days will be decisive in determining if Ethereum can establish a robust foundation for a bullish rebound or if bears will continue to dominate price activity.
Featured image from Dall-E, chart from TradingView
