Ethereum is facing pressure after failing to surpass the $1,874 high set on May 1st, which now acts as significant resistance. Currently trading just above $1,800, ETH needs bulls to defend this level and drive the price higher. The broader crypto market is heating up, but Ethereum remains range-bound.
Ethereum has been unable to establish a clear direction, causing caution among market participants. The asset is still down over 55% from its December highs, indicating prolonged weakness. Without a strong push through resistance, Ethereum risks falling further behind other major cryptocurrencies.
Crypto investor Michael Van de Poppe recently shared an analysis suggesting Ethereum is in an accumulation phase. According to Van de Poppe, ETH shows signs of strength against BTC but needs a decisive breakout above current levels. The coming days will be crucial for ETH's short-term outlook as market sentiment shifts.
While ETH/USD remains directionless and trades over 55% below its December highs, the ETH/BTC chart shows a constructive pattern. Van de Poppe's analysis highlights an accumulation structure forming in the ETH/BTC pair. Ethereum broke out of a falling wedge and is consolidating below resistance at 0.0195 BTC.
The chart also indicates a key demand zone around 0.0184 BTC, which ETH has repeatedly held. As long as this level holds, Ethereum could potentially move higher and surpass resistance. A successful breakout could signal Ethereum outperforming Bitcoin, common during altcoin expansion phases.
However, risks persist due to macroeconomic uncertainty, particularly U.S.-China tensions. Ethereum's upside potential depends on holding current support and clearing the 0.0195 BTC resistance. Success here could establish a base for a strong rally.
This article is based on our author's analysis of materials.