ETH is trading in a critical area right now. Additionally, it is trading well below the 100 and 200 exponential moving averages (EMAs) on the hourly chart. With the price of Ethereum stuck at $2,430, it has formed one of the tightest trading ranges seen in the past month. This consolidation and extreme volume indicates a potential breakout or breakdown is pending, creating a backdrop for what could be its next big price move.
Having bounced up from under $2,300 last week, Ethereum was able to reclaim the 100 EMA, signaling the start of a new bullish momentum. While the crypto saw a brief breakout over the 200 EMA, the bullish momentum was extinguished by resistance. Ethereum has been stuck in a tight consolidation pattern recently. It’s retesting the 200 EMA, which is a major indicator that buyers and sellers are always engaging in a bloody battle to gain control over.
The 100 EMA and 200 EMA are key support and resistance areas. A sustained move above the 200 EMA would likely confirm bullish control, potentially triggering a rally toward $2,500 or higher. Conversely, failure to maintain support at the 100 EMA may confirm that recent gains were only a short-lived relief bounce.
A drop under the 100 EMA might re-trigger bearish momentum, possibly pushing ETH down to the $2,350–$2,380 demand area. Ethereum’s next big move will heavily rely on its ability to move above the 200 EMA. If it is not able to hold support at the 100 EMA, the tide may turn quickly.
