In New York, the cryptocurrency market is experiencing a period of consolidation, with Ethereum showing signs of a slowdown amid excitement over potential ETFs. Analysts suggest that the overall sentiment and technical indicators point towards a phase of consolidation already in progress.
Following a recent surge in the hype surrounding spot ETFs, Ethereum’s rally appears to be losing momentum, with a significant decrease from a 17% increase last week to less than 1% this week. Investors are now speculating whether the second-largest cryptocurrency in the world is on the verge of entering a consolidation phase.
Data from Ethereum derivatives indicates mixed sentiment, hinting at a potential slowdown in the cryptocurrency’s rally. Despite increased trading volume and active trading with ETH, the market seems to be showing signs of caution.
Looking at the long/short ratios, there is a notable prevalence of long positions over shorts, suggesting that many traders are still optimistic about Ethereum’s future amidst anticipation for ETF trading set to begin soon. However, Ether’s liquidation pattern suggests a growing sense of market caution, a common precursor to short-term consolidations.
The ETH/USDt chart illustrates a consolidation pattern emerging, with Ethereum facing resistance after peaking around $3,980 and fluctuating between $3,770 and $3,900. The Relative Strength Index (RSI) currently indicates a neutral momentum, aligning with the ongoing consolidation and suggesting no clear bias towards bullish or bearish momentum in the near future.
From a technical analysis perspective, key support levels are around $3,770, with resistance set near $4,000. Despite a peak in social dominance driven by ETF hype, moving averages show a downward trend in the long term, indicating a waning interest in Ethereum overall.
Ultimately, Ethereum is not on the brink of consolidation—it is already in a consolidation phase. Traders and investors will be closely monitoring the market for further developments and potential shifts in momentum.