Ethereum (ETH) Consolidates Within Tight Range As Key Support Level Forms

Ethereum (ETH) has seen a 3.35% price increase over the past 24 hours, aligning with a broader crypto market upswing. However, on-chain data suggests the second-largest cryptocurrency is stuck in a tight trading range between $1,548 and $1,599, potentially signaling prolonged sideways movement.

According to blockchain analytics firm Glassnode, 793,900 ETH, worth approximately $1.2 billion, was purchased at $1,548, establishing a strong support zone. Conversely, 732,400 ETH acquired at $1,599 forms a significant resistance level. Over the past day, ETH has tested both levels without breaking out or down, reflecting market indecision.

Another critical support level is forming at $1,461, where 380,000 ETH, valued at $595.8 million, was bought. If ETH falls below the current range, this level could prevent further declines. However, a daily close below $1,461 might push prices toward $1,400 or even $1,200, according to analysts.

Market uncertainty, driven by macroeconomic factors and tightening liquidity, contributes to Ethereum's range-bound behavior. The asset’s daily trading volume has also dropped by 34.06%, indicating reduced market participation, which could hinder a sustained rally.

Despite the short-term consolidation, Ethereum remains a cornerstone of decentralized finance (DeFi) and smart contracts, with robust network activity signaling long-term potential.

Source: NewsBTC