Ethereum has been consolidating for over a month, which sets the stage for a potential sharp move. This article examines the critical levels defining the current market situation.
Current Consolidation of Ethereum
Ethereum has been in a sideways movement for 39 days. This extended period without a clear trend signals two potential outcomes: accumulation before a possible rise or distribution that may lead to a correction.
Key Support and Resistance Levels
The key levels in the current situation are:
- **Support:** $2,400 — a critical level coinciding with long-term moving averages and past support. - **Resistance:** $2,870 — a high time frame resistance level.
As long as the price holds above $2,400, optimistic expectations remain intact. A breakout above $2,870 could confirm an accumulation scenario.
Expectations for Price Direction
The current price range confirms the absence of a clear dominant side. Expected scenarios: a breakout above $2,870 would be viewed as a confirmation of accumulation, potentially pushing the price towards low $3,000 levels. Meanwhile, a breakdown below $2,400 could lead to a drop towards the next significant support level at $1,587.
The consolidation of Ethereum urges traders to be patient and await confirmation of direction for further market decisions.
