Ethereum Stabilizes Amid Rising Accumulation Trend – Is a New Bullish Phase Approaching?
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Ethereum faces significant pressure after failing to surpass the $1,874 peak established on May 1st, which now serves as a formidable barrier. While the overall cryptocurrency market is heating up, Ethereum remains trapped in a narrow range, lacking the momentum needed for a breakout. Currently priced just over $1,800, ETH finds itself at a pivotal point where bulls need to step up to support the price and drive it higher.
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Despite repeated efforts, Ethereum has struggled to find a definitive trend, making many market players increasingly wary. The cryptocurrency is still down more than 55% from its December peaks, indicating a sustained period of weakness compared to other leading cryptocurrencies. Without a robust push through resistance, Ethereum could continue to lag behind.
Prominent crypto analyst Michael Van de Poppe recently presented a technical perspective suggesting that Ethereum remains in an accumulation phase. He notes that ETH is showing signs of resilience and accumulation against Bitcoin but requires confirmation with a decisive breakout above current levels. Until that happens, Ethereum remains confined to its range and susceptible to volatility. With shifting market sentiment and potential significant movements on the horizon, the upcoming days will be critical for ETH’s short-term prospects.
Ethereum Accumulation: ETH/BTC Chart Suggests Possible Movement
Ethereum continues to struggle beneath the $2,000 threshold, failing to regain vital resistance levels despite rising activity in the broader market. While ETH/USD remains unanchored and trades more than 55% below its December highs, an in-depth analysis of the ETH/BTC chart indicates a potentially positive development unfolding below the surface.
Van de Poppe recently emphasized an accumulation structure emerging within the ETH/BTC pair. Following a prolonged decline, the chart indicates Ethereum breaking out of a falling wedge pattern and consolidating just beneath significant resistance at 0.0195 BTC. According to Van de Poppe, this represents a classic accumulation setup, implying that Ethereum may be on the verge of a noteworthy breakout against Bitcoin.
The chart further highlights a critical demand zone around 0.0184 BTC, a level ETH has consistently defended. As long as this support level is maintained, Van de Poppe believes Ethereum can gradually rise, ultimately clearing the liquidity above resistance. A successful breakout could initiate a phase where Ethereum outperforms Bitcoin, a trend often associated with the altcoin surge during bullish market periods.
Nevertheless, there are risks involved. The overarching market remains significantly affected by macroeconomic uncertainties, especially concerning tensions between the U.S. and China. Presently, Ethereum’s upward potential hinges on maintaining support and breaking through the 0.0195 BTC resistance. If achieved, this accumulation could serve as a foundation for a robust rally.
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ETH Price Stabilizes Within a Narrow Range
Currently, Ethereum is being traded at $1,795.79 following a slight downturn from the $1,874 local high noted on May 1st. Analysis of the daily chart reveals that ETH is consolidating within a narrow band after bouncing back from lows around $1,500 in April. However, despite this stabilization, ETH continues to trade significantly below both the 200-day simple moving average (SMA) at $2,709.54 and the 200-day exponential moving average (EMA) at $2,437.55, highlighting an enduring bearish trend.
While the bulls have successfully prevented further declines, Ethereum has not yet broken free from its enduring downtrend. The inability to reclaim $2,000 as a strong support level continues to hinder bullish momentum, and trading volume has remained modest during recent price activities, reflecting a lack of conviction from both buyers and sellers.
The current structure suggests a focus on accumulation, but ETH must clear the $1,875–$2,000 resistance zone convincingly to alter market sentiment and affirm a trend reversal. Should it fail, the potential for a renewed decline toward the support range of $1,650–$1,700 looms.
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Ethereum finds itself at a crucial juncture. The longer it hovers below significant moving averages, the more likely the market will remain hesitant. A successful breakout above $2,000 could prompt renewed upward movement and signify stronger market performance.
Main image from Dall-E, chart from TradingView
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