Ethereum’s price appears to be trapped in a tight trading bracket around the $2,500 mark, with its momentum stagnating despite the overall optimistic market sentiment. One prominent crypto analyst alerts market participants that the current price behaviour lacks the robustness required for a significant upward swing, advising prudence in trading. Without a definitive breakout indication, he suggests that a market entry at this stage could expose investors to potential downward risks.
In an analysis shared on the X social media platform, renowned market specialist Daan Crypto Trades points out that Ethereum’s price continues to oscillate within a well-established price corridor, presently sustaining above the $2,500 mark at $2,527. He highlights $2,800 as the crucial breakout figure that could ignite an Ethereum bull rally.
The analyst shared a chart demonstrating that Ethereum is confined between a “range low” of $2,313 and a high of $2,736, having made several unsuccessful attempts to escape this restrictive structure. The chart also indicates that the mid-range level of approximately $2,519 has become a vital point of control.
Despite a temporary rally that propelled Ethereum above $2,570 earlier this week, the cryptocurrency couldn’t maintain its upward trajectory, dropping below the $2,519 figure before bouncing back to its current price around $2,527. Daan Crypto Trades explains that Ethereum’s sluggish performance is due to its ongoing struggle to gain a firm foothold in the $2,500 price region. Given the apparent price imbalance in this region, the analyst advises traders to proceed with caution.
In this price range, traders could confront heightened price volatility and potential fakeouts, both above and below the critical support and resistance levels. Daan Crypto Trades suggests that until Ethereum firmly breaches and sustains above the $2,800 level, traders may see more lateral movement and unpredictable price fluctuations. A clean breakout over $2,800 could mark the beginning of a bullish trend, enhancing conditions for Ethereum and lifting it from its ongoing downtrend.
Another market expert, Mister Crypto, in a recent post on X, stated that Ethereum is poised to exit a lengthy multi-year consolidation phase. His chart visualizes two key periods – a potent 48x rally from 2018 through 2021 and a four-year horizontal consolidation range that extends from the 2021 peak until now. This extended phase of range-bound movement could precede a potentially explosive bull trend, similar to past breakouts. Along these lines, Mister Crypto marks a considerable open-ended “??X” label on his chart, suggesting an imminent breakout phase, though the exact scale remains speculative.
