Ethereum (ETH) continues to remain within a narrow trading range, drawing the interest of analysts and traders. Currently, there is accumulating pressure that could lead to a decisive breakout.
Analysis of Ethereum's Current State
According to analysts, the current price action for Ethereum is marked by strong absorption of wicks on both sides, indicating a classic sign of market compression. DaanCrypto noted: "Generally this kind of compression ends up in a large move once one side does give in." He suggests waiting for a higher timeframe candle close above or below the current range to confirm the direction of the breakout.
Wyckoff Methodology Applied to ETH
Analyst Merlijn The Trader applied Wyckoff methodology to ETH's current structure, identifying Ethereum's recent market behavior as passing through the Spring and Test phases—key points in a Wyckoff accumulation schematic. Now, ETH is approaching what Wyckoff theory calls the 'Creek' resistance line. Merlijn stated: 'It survived the Spring. It passed the Test. Now it’s at the edge of the Creek… and ETH is ready to break free.' The chart indicates a potential breakout area just above the $2,600–$2,700 zone, which, if cleared, could validate a transition into the next bullish phase.
Prospects and Possible Price Movement Scenarios
Both technical analyses suggest ETH is coiling for a significant move. On one hand, DaanCrypto’s observation of wick absorption and tight ranges reflects building momentum. On the other hand, Merlijn’s Wyckoff framework supports a bullish reversal narrative as long as Ethereum maintains structure above the $2,000 support. Traders are watching for a clean break of the $2,700–$2,800 resistance range as a potential launchpad toward higher levels.
In the current market situation, Ethereum displays signs of readiness for a breakout under increasing pressure. Analysts encourage caution, as key resistance levels could determine the subsequent price movement direction.
