Ethereum is in a 13-month accumulation phase with prices nearing critical support levels. Analysts forecast a potential climb to $4,000 in Q2.
Ethereum’s Consolidation and Accumulation
Ethereum has operated within the $2,300 to $4,050 range for over a year. The current price stands at about $2,493, marking a recent drop of 6.39%. However, history indicates that longer consolidation phases typically precede significant bullish breakouts.
Sideways Movement Signals Accumulation
Ethereum's market structure remains intact. The price has established higher lows within the range, forming an ascending accumulation pattern. These repeated tests of resistance and support levels signify a controlled accumulation phase rather than a bearish trend.
Key Levels and Breakout Potential
Historically, once accumulation phases conclude, substantial upward momentum follows. The previous 18-month accumulation period led to a breakout and strong rally. A similar pattern could unfold if Ethereum surpasses the $4,050 resistance. Moreover, the current support level of $2,300 to $2,650 has been maintained. Buyers continue to emerge at those levels, preventing further selling. If this support holds, the likelihood of an upward breakout remains high, although its loss could trigger a bearish trend.
As history suggests, the current accumulation phase in Ethereum could set the stage for a significant breakout, especially if existing support holds. A potential rise to $4,000 would be a notable event in the cryptocurrency market.
