• Ethereum has been trapped in a range between the 100-day moving average at $1781 and the ascending trendline around $1890 for an extended period of time.
• A large move is expected soon, as ETH is currently trading near the upper boundary of a descending wedge pattern on the 4-hour chart.
• The next move’s direction will likely be determined by a breakout from this range, which could lead to either further upside or downside.
Ethereum Consolidates Around $1800
Ethereum has remained stagnant for an extended period of time, leaving the market with uncertainty and full of bearish sentiment. However, the price is consolidating inside a tight range, and a breakout could finally hint at the next move’s direction.
The price faced resistance at the $2K level and subsequently dropped below a short-term upward trendline. It is now undergoing a pullback to test this same trendline. Meanwhile, ETH is up against the 100-day moving average, which represents a strong support level positioned at $1781. A significant increase in selling pressure would be necessary in order to push the price below this vital price point. Presently, ETH is confined within a tight range roughly between these two levels mentioned above.
4 Hour Chart
Zooming in on the 4 hour chart reveals more detail of Ethereum’s current state; small candles indicate a lack of clear direction during consolidation phase while briefly touching upper boundary of descending wedge pattern but was rejected. On 4 hour timeframe three important zones come into play: lower threshold multi month ascending channel (indicated by purple lines), significant level $1 and finally upper boundary descending wedge pattern around $1890-$1900 area.
Expectations & Next Move
A breakout from this sideways movement will likely determine Ethereum’s short term outlook as huge move might be imminent . If bulls manage to break above upper boundary of descending wedge pattern then they can target mentioned significant level around 1K while if bears take control then lower threshold multi month ascending channel might be tested again with more bearish outcomes possible afterwards
ETH remains stuck in a range between two key levels; therefore, traders should wait for any signs of breakouts before entering new positions as it will provide better insight into where Ethereum could go next..