Ethereum Trades Within $3,150-$3,500 Range Amid Consolidation Concerns
Ethereum (ETH) is currently trading between $3,150 and $3,500, leading to investor frustration due to its stagnant performance. The consolidation phase raises questions about its potential recovery this year. Key points include:
- Technical analysts identify a falling wedge pattern, a bullish reversal indicator.
- A breakout from this pattern may lead ETH to test the $4,000–$4,100 range.
- Current bearish sentiment raises concerns about a deeper correction if critical support levels are breached.
Daan emphasizes the need to monitor the trendline of the falling wedge for Ethereum's next move. A breakout could renew optimism, while failure to maintain support risks further declines.
Key Demand Levels
ETH is trading at $3,322 after experiencing volatile price movements. Maintaining the $3,300 support level is crucial for bulls. A breakout above $3,500 would signal a shift in market sentiment and potentially attract new buying interest.
If ETH fails to hold the $3,300 mark, increased selling pressure may occur, risking capitulation among investors disillusioned with its underperformance relative to other assets.