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Crypto Potato 2025-01-26 18:57:05

Ethereum Price Analysis: ETH Prepares for a Big Move – Up or Down?

Ethereum is on the verge of breaking out of a decisive price range, introducing heightened volatility and indecision to the market. A bullish breakout would likely trigger a rally toward the $4K resistance, while a bearish move could trigger significant downside momentum. Technical Analysis By Shayan The Daily Chart ETH’s price action reflects a phase of heightened volatility followed by a period of sideways consolidation. The cryptocurrency is currently trapped within a narrow range, defined by the 100-day moving average at $3.2K and the critical $3.5K resistance zone. This price range is significant, as it holds substantial liquidity that could fuel a sharp move in either direction upon a breakout. A break above the $3.5K mark would likely initiate a bullish rally toward the $4K threshold, reinforcing positive market sentiment. Conversely, a bearish breakdown below the 100-day MA could result in a cascade of sell orders, potentially driving the price down toward the $3K support level. The upcoming price action within this range is pivotal for shaping Ethereum’s mid-term trend, with both buyers and sellers prepared for heightened market activity. The 4-Hour Chart On the lower timeframe, Ethereum’s tight trading range reflects a fierce struggle between bulls and bears. The price is bounded by the 0.5 Fibonacci retracement level at $3.2K and the descending wedge’s upper boundary near $3.3K, resulting in volatile sideways movement. Ethereum buyers are showing determination, aiming to push the price above this dynamic resistance. If successful, this breakout could drive the asset toward the $3.5K threshold, where further upside momentum could be tested. However, should sellers regain control, a breakdown below the 0.5 Fibonacci level would likely lead to a bearish cascade, targeting lower support levels. Given the market’s current state, a bullish breakout above the descending wedge and a subsequent rally toward the $3.5K resistance is the more probable scenario in the short term. This move could signal renewed optimism and set the stage for further gains in the market. Onchain Analysis By Shayan During the recent consolidation stage, two significant liquidity pools have emerged, one below the $3.2K mark and the other above the $3.5K threshold. These zones represent the liquidation levels for short and long positions, respectively, and are highly attractive targets for bears and bulls. The clustering of liquidity at these levels underscores the heightened tension between supply and demand forces in the market. This setup makes both the $3.2K support and $3.5K resistance critical levels to watch as the market appears poised for a decisive move. The concentration of liquidity at these thresholds increases the likelihood of a breakout toward either direction in the near term. Given the current market conditions and the visible bullish momentum, a breakout above the $3.5K mark seems more probable in the short-to-mid term. Such a move would likely aim to capture liquidity above this threshold, paving the way for a sustained rally toward higher resistance levels. The post Ethereum Price Analysis: ETH Prepares for a Big Move – Up or Down? appeared first on CryptoPotato .

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