- One analyst highlighted ETH’s position to suggest a breakout could be imminent if demand surges
- Further analysis hinted that the accumulation phase may take longer to resolve itself
As a seasoned crypto investor with a decade of market experience under my belt, I find myself intrigued by the current state of Ethereum [ETH]. While the recent surge has been impressive, the temporary slowdown and ongoing accumulation phase are not unfamiliar territories for me.
As an analyst, I’ve observed that after a strong surge over the past few months where Ethereum [ETH] increased by approximately 46.65%, there seems to be a slight pullback in its growth. Specifically, within the last 24 hours, ETH has dipped by 0.13%. This dip suggests a temporary deceleration in its pace, but it doesn’t necessarily mean a broader trend reversal.
As reported by AMBCrypto, this slowdown could align with the current accumulation stage, which is a positive indicator for future expansion. However, it’s uncertain how long the market will maintain this trend.
Is ETH on the verge of a breakout? Analysts weigh in
As per crypto analyst Crypto Jelle’s analysis, Ethereum (ETH) appeared to be moving within a constructive pattern called a symmetrical triangle (a consolidation period) when last observed. This pattern is highlighted on the chart using white lines.
Historically speaking, such a pattern often signals that a rally might ensue next. The accumulation phase refers to buyers buying ETH at lower prices in anticipation of increased demand, which would then push the price upward. If this trend develops, it’s possible that ETH could reach $8,500 according to the chart’s predictions.
On the other hand, AMBCrypto’s examination suggests that the buildup stage could be favorable for Ethereum’s future growth, but it probably won’t spark a surge immediately.
Participants in the market are continuing to bid at lower prices, implying that it might take longer for a breakout to occur.
ETH’s market sees active bidding amid accumulation phase
Currently, when I’m composing this text, Ethereum (ETH) is observing considerable trading activity – Indicative of a continuous accumulation period. This situation has kept ETH exhibiting a swing-like pattern – Fluctuating between the approaching support and resistance lines of the symmetrical triangle.
It appears that this pattern is clearly visible due to the significant increase in extended closures (long liquidations), which are now over twice as common as quick closures (short liquidations). Notably, with $31 million worth of long liquidations occurring, the market seems to be gearing up for a potential decline.
Additionally, AMBCrypto observed that this trend has been driven by an uptick in active user accounts, which surged beyond 406,000 as some Ethereum holders chose to cash out their profits. This represents a significant jump from the 365,000 active accounts noted only yesterday.
If prolonged sell-offs persist and the number of active users stays elevated, it’s probable that Ethereum will experience a drop as part of its current accumulation period.
Profit-taking activity limits ETH’s rally
The upward momentum of ETH has been tempered by continuous selling from traders, a trend that’s evident in the Taker Buy Sell Ratio monitored by CryptoQuant.
Currently, the selling volume is more than the buying volume, with a balance of 0.85. This discrepancy has caused Ether’s (ETH) price to decrease, adding to its overall decline in value.
Maintaining its current trajectory, Ethereum might continue to stay bounded within its present price range, potentially postponing any substantial price surge.
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2024-12-04 13:11