Ethereum Price Analysis: ETH Prepares for Big Move

ethereum is about to break out of a decisive price range, introducing further volatility and indecision into the market.

A bullish breakout would likely trigger a rally towards the $4K resistance, while a bearish move could trigger significant downward momentum.

Technical analysis

By Shayan

The daily table

eth price action reflects a phase of increased volatility followed by a period of sideways consolidation. The cryptocurrency is currently stuck within a tight range, defined by the 100-day moving average at $3.2k and the critical $3.5k resistance zone.

This price range is significant as it possesses substantial liquidity that could fuel a sharp move in either direction on a breakout. A break above the $3.5k mark would likely initiate a bullish rally towards the $4K threshold, reinforcing the positive market sentiment. Conversely, a bearish breakout below the 100-day MA could lead to a cascade of sell orders, potentially driving the price towards the $3k support level.

The next price action within this range is critical in shaping ethereum's midterm trend, with buyers and sellers poised for further market activity.

The 4 hour table

In the lower term, ethereum's trade adjustment reflects a fierce fight between bulls and bears. The price is capped by the 0.5 Fibonacci retracement level at $3.2k and the upper boundary of the descending wedge near $3.3k, resulting in a volatile sideways move.

ethereum buyers are showing determination, aiming to push the price above this dynamic resistance. If successful, this breakout could drive the asset towards the $3.5k threshold, where further upside momentum could be tested. However, if the sellers regain control, a breakout below the 0.5 Fibonacci level would likely lead to a bearish cascade, targeting lower support levels.

Given the current state of the market, a bullish break above the falling wedge and a subsequent rally towards the $3.5k resistance is the most likely near-term scenario. This move could signal renewed optimism and set the stage for further gains in the market.

Candle analysis

By Shayan

During the recent consolidation stage, two significant liquidity pools have emerged, one below the $3.2k mark and the other above the $3.5k threshold. These zones represent liquidation levels for short and long positions, respectively, and are very attractive targets for bears and bulls. The pooling of liquidity at these levels underscores the heightened tension between supply and demand forces in the market.

This setup creates the $3.2k support and critical $3.5k resistance levels to watch as the market appears poised for a decisive move. The concentration of liquidity at these thresholds increases the probability of a breakout in either direction in the short term.

Given the current market conditions and visible bullish momentum, a break above the $3.5k mark seems more likely in the short to medium term. Such a move would likely aim to capture liquidity above this threshold, paving the way for a sustained rally towards higher resistance levels.

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