Ethereum has recently been oscillating between $2,650 and $2,750, creating an atmosphere of short-term uncertainty. The cryptocurrency is currently navigating a narrow range of demand and supply levels, with bulls finding it challenging to recapture the $2,800 mark. This crucial supply zone could play a significant role in dictating Ethereum’s next move, while persistent selling pressure has resulted in subdued price activity.
Investors are navigating volatility with caution as Ethereum shows signs of frailty compared to Bitcoin, prompting fears of a further decline if it fails to stay above $2,600. Some analysts are concerned that breaching this level might trigger a deeper correction.
However, there is optimism among others who believe Ethereum might be forming a long-term bullish pattern.
Crypto analyst Jelle recently shared insights on X, highlighting that Ethereum is currently trading within a multi-year ascending triangle. Historically, this formation has signaled a potential breakout. A successful push above the $2,800 level could pave the way for a recovery towards the $3,000 resistance. The upcoming days are likely to be pivotal in establishing Ethereum’s short-term path.
Ethereum’s current trading around critical liquidity levels is keeping investors on edge, as short-term direction remains unclear. With ETH closing between $2,650 and $2,750 this week, the market is rife with speculation. Some expect further corrections and an extended period of consolidation, while others are hopeful for a rally. The market anticipates a decisive breakout or breakdown to set the next trend.
A push above $2,700 and its consolidation as support would be the initial sign of bullish momentum. For a definitive recovery phase, Ethereum must break past the $2,800 and $3,000 resistance zones, which have historically acted as strong supply barriers. Failing to reclaim these levels could lead to a further drop to the $2,500 support area.
Jelle's analysis emphasizes that Ethereum remains within a massive ascending triangle, a long-standing bullish configuration. Previous fakeouts have occurred on both sides, but Jelle posits that with downside liquidity exhausted, Ethereum could soon attempt a resurgence.
Currently trading at $2,720, Ethereum’s sideways movement below the $2,800 threshold indicates a struggle to gather breakout momentum. The $2,800 mark serves as a significant supply zone. Surpassing and maintaining momentum above it could allow for a rally towards $3,000.
Down at the $2,700 and $2,600 levels, defense is vital for sustaining bullish momentum. Holding these supports could signal robust demand and potentially trigger a recovery rally, prompting buyers to re-enter the market. Conversely, falling below $2,700 heightens the risk of further selling pressure. A dip below $2,600 may lead to a deeper correction into the $2,500 demand zone. The imminent days will be decisive in determining Ethereum’s foothold for a bullish reversal, or if bearish sentiments will continue to dominate.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.