Ethereum trades within a consolidation zone, with price action hinging on reclaiming the bull flag’s mid-level for further upside.
Despite recent rejections, Ethereum maintains bullish structure above key moving averages, signaling underlying market strength.
Trading volume has stabilized after a volatile period, suggesting investors await stronger signals before committing to new positions.
Ethereum's price action has recently turned cautious after a powerful rally earlier this year. The ETHUSDT pair currently trades at $2,524.75, down 0.58% over the last session. Despite the decline, Ethereum remains in a consolidation phase following a sharp rebound in May. Market participants are now closely watching the mid-level of a bull flag pattern on the daily chart. ETH must reclaim this zone to confirm a continuation toward higher levels.
Besides the current pullback, Ethereum's structure still reflects overall recovery strength. From March through April, ETH dropped sharply from the $3,000 range to a low near $1,600. Selling pressure was intense during that period, pushing prices down rapidly. However, the trend reversed in early May as strong demand returned. Ethereum quickly rallied back, surging from $1,600 to over $2,800 within weeks. This rapid ascent shattered several resistance zones and shifted sentiment to bullish.
Technical Indicators Show Mixed Momentum
However, Ethereum failed multiple times to flip the key horizontal resistance near the upper flag boundary. Each rejection caused price pullbacks, weakening short-term momentum. The most recent rejection drove ETH below the flag’s mid-level. Significantly, this level now acts as an important pivot. Reclaiming it could confirm Ethereum's intent to revisit $2,800.
Source: Alpha Crypto
Additionally, technical indicators highlight a mixed picture. The 9-period EMA sits at $2,528.53, slightly above the current spot price. Hence, short-term momentum remains intact if ETH holds near this average. Moreover, the 50-period SMA stands at $2,265.76, well below current levels. This alignment indicates a favorable medium-term structure.
Volume Activity Reflects Market Caution
Moreover, trading volumes have normalized following extreme volatility in April and May. Recent volume bars show balanced buying and selling. Green and red bars appear in similar frequency, signaling cautious sentiment. Consequently, this volume trend suggests traders are awaiting a stronger signal before committing.
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