ETH Stuck for Over a Month: A Major Shift Is Near!
With neither bulls nor bears gaining complete control, Ethereum has already spent more than a month trading in a narrow range. The setup gets more and more ready for a powerful directional move as the price contracts and the volatility stalls.
With price action unable to produce a clear trend, Ethereum has been trapped between two important high time frame levels over the last 39 days. A distribution phase that results in a breakdown and a more profound correction, or an accumulation phase preceding a higher continuation, are the two possible outcomes that this extended consolidation portends.
ETH’s Technical Setup Hints at Imminent Bullish Breakout
Ethereum is now holding above a crucial support level of $2,400. Because it is in line with long-term moving averages, previous support levels, and the current point of control—the region with the largest traded volume within this range—this level has a lot of technical confluence.
The bullish case is still marginally favored, with a move over the $2,870 resistance possible, as long as Ethereum keeps closing above this zone. A rally into the low $3,000s might be triggered by a breakout over that level, which would probably validate the consolidation as accumulation.
Indecision Grips Ethereum: Bullish or Bearish Break Next?
On the other hand, the bearish scenario takes precedence if $2,400 is lost. The structure would change strongly in favor of the bears and allow for a move toward the next major support, which is located around $1,587 and was last reached during previous market corrections, if there were a sustained collapse below this crucial support.
Crucially, the current state of price action is essentially in a state of indecision since it is neither blatantly bullish nor bearish. The market is waiting for either a spike in volume or a catalyst to close this range as the consolidation continues. Traders need to exercise patience and let the market determine its course.
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