• Ethereum has been stuck in a price range between $1.1K and $1.3K for the past 51 days.
• The price faces a critical price zone consisting of the 50-day moving average as a resistance and the multi-month channel’s middle level as a support.
• If ETH surpasses the 50-day moving average at $1225, the bulls should expect a breakout of the consolidation range.
Ethereum has been stuck in a tight price range between $1.1K and $1.3K for the past 51 days. This has marked a significant drop from its yearly high, which had been hovering around $2.2K. While the price has not yet shown any signs of a significant breakout, it has been slowly but steadily increasing, suggesting that the worst of the crash may have already passed.
Currently, Ethereum faces a critical price zone consisting of the 50-day moving average as a resistance and the multi-month channel’s middle level as a support. This range has been the defining factor of the market for the past few weeks and the bulls and bears are both eagerly awaiting a breakout. While the bears are hoping for a further decrease in price, the bulls are expecting the price to break out of the range and reach higher levels.
If the price does break out of the range, the most likely scenario is for it to surpass the 50-day moving average at $1,225. This would signify that the bulls have gained the upper hand and that the consolidation range has been broken. If this happens, the bulls should expect a breakout of the consolidation range and the possibility of a further increase in price in the short-term.
However, the bears are not to be underestimated either. If the price drops below the multi-month channel’s middle level, this could signify a further decrease in price and a further drop in Ethereum’s value. This would be a major blow to the bulls and could further delay the recovery of the market.
Overall, Ethereum is at a critical juncture and the direction of the market will be determined by the outcome of this range. The bulls are hoping for a breakout and a further increase in price, while the bears are hoping for a continuation of the consolidation range. However, only time will tell which side will prevail.