Ethereum Is Consolidating After The Flush Last Weekend – The Calm Before A Big Move?
Ethereum experienced one of the most aggressive sell-offs in its history on Monday, with the rate of selling in one day falling 25% in a single day amid panic across the market. The rapid decline allowed the shock wave to pass through the crypto space, one of the most turbulent trading sessions ETH has ever seen.
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However, within a few hours, the price rebounded, erasing almost the entire drop and stabilizing above the critical support level. Despite this rapid recovery, Ethereum is now facing serious risks as it trades slightly below key resistance levels, which leaves investors uncertain about what to do next.
Top analyst Daan analyzed a technical analysis on X that shows that both Bitcoin and Ethereum are currently in a merger, trying to form higher lows after the dramatic market flush this weekend. He noted that this phase is crucial to identifying the next major trend, as keeping the current level above the current level could mean the beginning of a new bullish leg.
Failed to build strong support This could lead to further disadvantages that put Ethereum at another risk of correction. As uncertainty remains, all eyes are on ETH’s ability to recycle lost ground and build momentum for potential breakthroughs in the coming days.
Ethereum prepares for uncertainty decisive moves
Ethereum is currently trading below $2,800, striving to gain momentum after last week’s historic volatility. Recent price action has frustrated investors as hopes of strong gathering continue to fade. Despite Bitcoin’s relative strength, Ethereum is still in a close range and cannot exceed key resistance levels. Uncertainty in the market has led to a decline in investor confidence, and many people question whether ETH can quickly restore its bullish structure.
Top Analyst Daan Shared technical analysis on Xrevealing consolidation is forming everywhere. He noted that BTC, ETH and most Altcoins have shown similar patterns to establish higher lows after an active flush on the weekend.
According to Daan, if Ethereum successfully surpasses its merger channel, it could gain the momentum needed to exceed key supply levels and start a new bullish phase. However, not doing so could lead to greater downward pressure.
The next few weeks will be crucial to the Ethereum price trajectory. If ETH can hold more than $2,700 and push it to $3,000, it could cause new interest from investors. However, the continued failure to restore critical levels of resistance may further consolidate Ethereum, further frustrating market participants.
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Despite short-term uncertainty, institutions continue to accumulate ETH and recognize its long-term value. Historically, these merger periods were followed by explosive price movements.
Prices struggle under $2,900
Within a few days of consolidation, Ethereum is currently trading below $2,900. Despite multiple attempts to increase the speed, ETH is still struggling to regain key resistance levels, indicating a shift in momentum. Price action remains uncertain, with the Bulls trying to hold the $2,700 support zone while looking for a breakout of more than $2,800 to regain short-term control.
The most critical resistance level is still $3,000. If Ethereum can successfully push up this price and turn it into support, it will open up a higher level of supply for the assembly. This will strengthen bullish cases and potentially trigger a shift to $3,300 or higher.
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On the downside, holding more than $2,700 is crucial to avoid further sales pressure. If ETH fails to defend this level, the next step may be $2,600 or even $2,500. However, as long as Ethereum remains within this consolidation range, traders will continue to focus on decisive breakthroughs. Over the next few days, the closing price is above $2,800, which will be the first sign of the Bulls gaining momentum and a new uptrend is underway.
Featured images from DALL-E, charts from TradingView
