Ethereum has seen a slowdown in its growth following a strong rally in recent months, where the asset experienced a 46.65% increase. In the past 24 hours, ETH dipped by 0.13%, indicating a temporary deceleration.
As per analysis from CryptoCrypto, this slowdown aligns with the ongoing accumulation phase, which presents a positive outlook for long-term growth. However, uncertainty lingers regarding the duration of this market pattern.
Could ETH Be on the Brink of Breaking Out? Insights from Analysts
Crypto analyst Crypto Jelle suggests that ETH is currently trading within a bullish pattern termed a symmetrical triangle, representing an accumulation phase. This is visible through the white lines on the chart.
Historically, such patterns hint at an upcoming rally, where buyers acquire ETH at discounted rates before a surge in demand propels the price upwards. If this scenario unfolds, ETH could potentially reach $8,500, based on chart projections.
Nevertheless, CryptoCrypto’s analysis indicates that while the accumulation phase is favorable for ETH’s long-term prospects, a rally may not be immediate. Market players continue to bid at lower price levels, implying that a breakout might take more time to materialize.
ETH Market Sees Active Bidding Amid Accumulation Phase
Currently, ETH’s market is witnessing active bidding, signaling the presence of an ongoing accumulation phase. This has resulted in ETH maintaining its oscillating movement, fluctuating between the converging levels of support and resistance within the symmetrical triangle.
This trend is evident through the notable increase in long liquidations, which have doubled in comparison to short liquidations. With $31 million in long liquidations recorded, the market appears poised for a downward trend.
CryptoCrypto also notes a surge in active addresses, surpassing 406,000, as numerous holders sell off ETH to secure profits. This marks a significant rise from the 365,000 active addresses registered just a day earlier.
If the upward trend in long liquidations persists alongside high active addresses, ETH is likely to continue its downward trajectory within the ongoing accumulation phase.
Profit-Taking Activity Constrains ETH’s Rally
ETH’s rally is being hindered by continuous profit-taking actions, as shown by the Taker Buy Sell Ratio monitored by CryptoQuant.
Currently, the ratio sits at 0.85, indicating that selling volume surpasses buying volume. This imbalance has driven ETH’s price down, contributing to its downward movement.
If this pattern persists, ETH is likely to remain within its current trading range, delaying any substantial upward momentum.