Technical Analysis Shows Prolonged Consolidation
Ethereum continues to trade within a tight range, showing choppy price action as both buyers and sellers wait for a clear directional move. The daily chart reveals the asset remains trapped between the 100-day moving average and the flag pattern’s upper boundary near $4,100. This area has repeatedly acted as a supply zone that rejects upward movements.
On the lower end, the $3,500 demand zone provides solid support where buyers consistently step in. Until we see a confirmed breakout in either direction, Ethereum will likely keep consolidating within this structure. The market appears to be absorbing order flow and building liquidity for what could be a significant move later.
4-Hour Chart Reveals Symmetrical Triangle Pattern
The shorter timeframe shows Ethereum fluctuating inside a symmetrical triangle, which typically signals market indecision. The asset currently trades just below the triangle’s upper boundary around $4,000, but momentum hasn’t been strong enough yet for a confirmed breakout.
This compression pattern often precedes volatility expansion. If bulls can push above the upper trendline, we might see a rally toward $4,100 and potentially $4,600. But if support breaks at $3,700, the $3,400 demand zone could come into play again. For now, the narrowing range suggests we’re building toward a sharp directional move.
Liquidation Heatmap Points to Key Levels
The 1-month liquidation heatmap reveals interesting dynamics. There’s a dense liquidity pocket forming above the $4,800 swing high, just beyond the current consolidation structure. This area contains significant resting short liquidations, meaning if Ethereum can reclaim the $4,100-$4,300 range, we might see a rapid move to absorb that overhead liquidity.
Below current prices, the $3,500 range shows weaker liquidation density, suggesting much of the downside liquidity was cleared during last week’s sell-off. This configuration reinforces the idea that Ethereum will likely continue oscillating within its current range until one of these liquidity pockets gets tested.
What Comes Next
Overall, the heatmap confirms that short-term volatility will probably stay concentrated between $3,400 and $4,800. The upper range has a slightly higher chance of being targeted first due to the larger liquidity concentration above current levels. But honestly, it’s hard to say which way the breakout will go – the market seems genuinely uncertain right now.
I think the key takeaway is that we’re in a waiting game. The compression we’re seeing typically doesn’t last forever, and when it breaks, the move could be substantial. But trying to predict the exact timing or direction feels like guesswork at this point. The technical setup suggests we’re building toward something, but what exactly remains to be seen.
