Ethereum To Move Sideways For 2-3 Months? Analyst Says Longer ETH Consolidation Is Needed

Rubmar Garcia

3 months ago

3 mins read

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Ethereum (ETH) has failed to break from a key level, retracing 4% as most of the market bleeds. Some analysts believe that ETH’s next leg up won’t come in a few months, as the second-largest cryptocurrency could move sideways until May.

Ethereum To Continue Sideways Move?

On Monday, Ethereum swan against the current and registered a 6.3% surge toward the $2,850 support zone, momentarily breaking out of a symmetrical triangle pattern where it has been consolidating for the past 15 days.

The cryptocurrency attempted to reclaim the $2,700-$2,800 level but failed to hold the zone in the following hours. On Tuesday, ETH’s short-lived party ended, sending the King of Altcoins on a 4% pullback toward the $2,605 mark.

Crypto analyst Ali Martinez noted that Ethereum needed to hold the $2,600 support, a crucial level for the cryptocurrency, to continue within its multi-year ascending channel. To the analyst, failing to hold this level could hinder the long-awaited Altcoin season.

Moreover, failing to hold this level could see ETH dropping to the $2,400 mark, as the current level doesn’t have significant demand. According to Martinez, the $2,425 level remains the most critical support zone for the cryptocurrency, as 10.33 million wallets accumulated 63.43 million ETH.

Amid its most recent performance, market watcher DocXBT considers that Ethereum needs a re-accumulation period to attempt to reclaim higher levels. The analyst stated, “It needs an extended period of re-accumulation,” as the ones seen during the FTX collapse, 2023’s capitulation, and summer 2024’s capitulation.

To DocXBT, “There’s nothing for ETH to do except go sideways for an extended period of time.” He added that it could continue hovering within its current range for two to three months “before we can bring trends down, flip them, and maybe get bullish again.”

ETH’s $4,000 Breakout Just ‘A Matter Of Time’

Crypto trader Mikybull pointed out ETH’s bullish pattern in the longer timeframes. Ethereum has been in an ascending triangle since 2022, which suggests it could have a “massive breakout” once the upper resistance, around the $4,000 mark, is broken.

The trader asserted that a “longer consolidation leads to a sustainable rally.” Similarly, analyst Ted Pillows stated that Ethereum is holding its uptrend support level, which suggests that the $4,000 breakout is just “a matter of time,” which could lead to a retest of the 2021 all-time high (ATH).

The analyst pointed out the sentiment shift toward the Solana memecoin ecosystem, suggesting that rotation to Ethereum is about to happen. “Memecoins chains are dying, and people are flocking to utility chains,” he affirmed on X.

Other analysts have recently signaled the potential rotation from SOL to ETH, arguing that the SOL/ETH trading pair has topped after the recent events in the Solana network. The most recent incident saw capital rotate toward Ethereum for the first time in a while and suggests the “ETH season” could be near.

At the time of writing, Ethereum trades at $2,631, a 1% retrace in the weekly timeframe.

Ethereum, eth, ethusdt — Ethereum’s performance in the one-week chart. Source: ETHUSDT on TradingView

Featured Image from Unsplash.com, Chart from TradingView.com

Rubmar Garcia

Rubmar is a writer and translator who has been a crypto enthusiast for the past four years. Her goal as a writer is to create informative, complete, and easily understandable pieces accessible to those entering the crypto space. After learning about cryptocurrencies in 2019, Rubmar became curious about the world of possibilities the industry offered, quickly learning that financial freedom was at the palm of her hand with the developing technology.

From a young age, Rubmar was curious about how languages work, finding special interest in wordplay and the peculiarities of dialects. Her curiosity grew as she became an avid reader in her teenage years. She explored freedom and new words through her favorite books, which shaped her view of the world. Rubmar acquired the necessary skills for in-depth research and analytical thinking at university, where she studied Literature and Linguistics. Her studies have given her a sharp perspective on several topics and allowed her to turn every stone in her investigations.

In 2019, she first dipped her toes in the crypto industry when a friend introduced her to Bitcoin and cryptocurrencies, but it wasn’t until 2020 that she started to dive into the depth of the industry. As Rubmar began to understand the mechanics of the crypto sphere, she saw a new world yet to be explored.

At the beginning of her crypto voyage, she discovered a new system that allowed her to have control over her finances. As a young adult of the 21st century, Rubmar has faced the challenges of the traditional banking system and the restrictions of fiat money.

After the failure of her home country’s economy, the limitations of traditional finances became clear. The bureaucratic, outdated structure made her feel hopeless and powerless amid an aggressive and distorted system created by hyperinflation. However, learning about decentralization and self-custody opened a realm of opportunities. Cryptocurrencies allowed her to experience financial control for the first time and expand her financial education.

Moreover, the peculiar nature of the crypto community sparked Rubmar’s curiosity about the other layers of the industry. As a result, she found a particular interest in discovering the diverse perspectives of investors, market watchers, experts, and developers. Her attempts to better understand the crypto space made her realize the strong links of the community with other industries, enriching her perspective of the sector. As someone who spends most of her day online, Rubmar enjoys finding the points where the crypto world meets with her other passions and hobbies –or her favorite memes.

In her free time, she usually finds joy in different art forms. As a child, she enlisted in every extra-curricular activity in her hometown, including music classes, dancing, jewelry making, and the local chorus. Despite her many attempts to learn different instruments, Rubmar only knows how to play the xylophone, which she played for 7 years in her school’s marching band.

She also has a passion for learning new languages and cultures, having set the goal to learn another six languages – currently attempting to learn Italian and Korean. Scrapbooking, paper crafting, and bookbinding are her biggest interests outside of work, constantly taking classes and attending workshops to learn new techniques. The rest of her free time is spent stressing over football matches and transfer market news or feeding cats –hers or stray.

In summary, Rubmar seeks to present entertaining and educational pieces to be enjoyed by everybody, aiming to report on the latest news and offer a unique perspective while adding a meme or a pun whenever possible.

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