Ethereum's Price Squeezing Towards $4.2K Minimum, Indicating Potential Breakout: Which Way Will It Go, $3,900 or $4.5K?
In the cryptocurrency market, Ethereum (ETH) has been locked in a narrow trading range for several weeks, with traders adopting a cautious approach. The digital asset is currently trading at $4,296.59, down 2.39% over the day and 1.35% through the past week.
The trading volume in the last 24 hours is over $21.8 billion, but volume remains muted, indicating consolidation as traders wait for a clear signal. The support for Ethereum at $4.2K-$4.3K is weakening, raising the risk of a breakdown.
Patience is proving to be the common stance among traders tracking the chart closely. Market analysts, such as Daan Crypto Trades, suggest waiting for strength above $4.5K or a drop toward the $3,900 level before opening new long positions. The Relative Strength Index (RSI) for Ethereum is currently near 72, indicating that it is not yet overbought.
However, shallow bounces have been observed during each test of support, making the base look weak. The longer Ethereum remains stuck in its tight trading pocket, the sharper the eventual move could be. Market watchers are debating whether the next move for Ethereum will be up or down.
Some analysts predict that support may give way, potentially driving Ethereum towards the $3,900 zone. On the other hand, a strong position above 4,500 USD could open up opportunities for new long positions. The lack of momentum deepens the pressure around support, adding to the uncertainty.
Despite the current cautious stance, the RSI reading of 72 suggests that Ethereum is approaching higher levels but not yet overheated. The compressed range leaves a potential for a sharp move either up or down once a breakout or flush occurs. Until then, traders are advised to remain vigilant and patient.
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