The growth of Ethereum’s [ETH] has somewhat stabilized after a strong rally in recent months that saw the asset increase by 46.65%. However, there was a minor 0.13% decrease in ETH over the last 24 hours, signaling a temporary slowdown in its upward trajectory.
Analysis from CryptoCrypto suggests that this slowdown aligns with the current accumulation phase, indicating a positive outlook for long-term growth. Yet, uncertainties linger regarding the duration of this market condition.
Expert Insights on ETH’s Potential Breakout
According to the crypto analyst Crypto Jelle, ETH appears to be trading within a bullish symmetrical triangle pattern, denoting an accumulation phase, as depicted by white lines on the chart.
Based on historical data, this pattern typically precedes a rally, with buyers accumulating ETH at lower prices before increased demand drives the price upwards. If this pattern unfolds as predicted, ETH could potentially reach $8,500, as indicated by chart analysis.
However, CryptoCrypto’s analysis suggests that while the accumulation phase holds promise for ETH’s future, an immediate rally seems unlikely as market participants continue to bid at lower price levels, hinting at a potential delayed breakout.
Active Bidding and Accumulation Phase in ETH’s Market
Currently, ETH’s market reflects active bidding, hinting at an ongoing accumulation phase that has led ETH to move between converging support and resistance levels within the symmetrical triangle pattern.
This is evidenced by a notable increase in long liquidations compared to short liquidations, with $31 million in long liquidations signaling a possible shift towards a downward trend.
Moreover, the surge in active addresses, totaling over 406,000 as holders sold ETH to secure profits, indicates a dynamic market environment supporting the ongoing accumulation phase.
ETH’s Rally Limited by Profit-Taking Activity
Despite ETH’s positive momentum, profit-taking activities have constrained its rally, reflected in the Taker Buy Sell Ratio monitored by CryptoQuant.
The current ratio stands at 0.85, suggesting a dominance of selling volume over buying volume, driving ETH’s price lower and impacting its upward movement.
If this trend persists, ETH is likely to continue trading within its existing range, delaying any significant upward surge.