In preparation for a potentially huge breakout, the price of ethereum is consolidating in a rectangular shape. Holders with 1,000–10,000 Eth are still dubious about a positive rise.
ETH Price: Current situation
Until the price of Ethereum (1) breaks out of the rectangular channel, the bumpy market is expected to remain. Between a lower range limit of $1,272 and an upper range of $1,380, the price of ethereum oscillates. Most investors were ignorant of its recent rejection, which caused ETH to drop to trade at $1,330 as of this writing. Going into the weekend, support at $1,300 is still essential for Ethereum's price recovery. If not, its lower range limit will be tested or possibly beyond.
Is a price breakthrough likely?
The four-hour chart's rectangle pattern depicts an ambiguous technical picture of the price of Ethereum. In other words, the price is constrained by parallel support and resistance zones, showing a protracted period of consolidation. Rectangle patterns do not bear a bullish or bearish bias, which is important to note. Investors should remember that a breakout might occur either upward or downward.
To maintain the direction of the trend that preceded the consolidation, the price of Ethereum may explore regions below the pattern. The same chart's MACD (Moving Average Convergence Divergence) recently gave a sell signal. If one bears heed the warning, pressure will build on ETH, and a negative breakthrough might occur. Bulls are getting respite from the 50-day SMA , red, and the 100-day SMA, blue. To escape the tightening grasp of the bears, the price of Ethereum must maintain a position above these moving averages.
Are whales suffocating the price of Ethereum?
Large volume holders of ETH have not stopped selling since the Merge (2) on September 15. The supply distribution table below shows a 2.40% decrease from 5,634 to 5,499 addresses. As whales dump Ethereum, the pressure extinguishes any bullish embers, causing more losses. Therefore, a bearish breakout from the rectangle, which might cause the price of ETH to go below $1,000, is not entirely unlikely.
If information from the IOMAP on-chain statistic from IntoTheBlock (3) is considered, the range consolidation of the Ethereum price will continue. Significant resistance is anticipated at $1,397 when about 288,800 addresses purchased 5.18 million ETH tokens. Because investors would choose to sell at breakeven positions, creating overhead pressure, breaking above this level would not be simple.