⚠️ Ethereum in Limbo: Calm Before a Major Breakout?
Ethereum (ETH) is currently caught in a consolidation phase after a 5% drop over the past week. Prices have been fluctuating between $3,500 and $3,700, now sitting at $3,633.
The dip follows a cooling market and profit-taking by traders. On-chain and futures data hint at a short-term pullback, with CryptoQuant analyst Darkfost pointing to increased selling pressure and weakness in ETH futures.
Key Signals:
Taker Buy/Sell Ratio on Binance plunged to 0.87, the lowest of the year – signaling strong short interest.
ETH has repeatedly failed to break above the $4,000 resistance, reinforcing market hesitance.
7-day & 30-day SMAs are starting to decline – suggesting fading bullish momentum.
With Binance holding the largest ETH futures open interest, the data strongly suggests that consolidation may persist unless significant buying activity returns.
🔮 What’s Next? Despite the near-term weakness, some analysts remain bullish long-term. A massive monthly triangle formation hints at a potential breakout. If ETH clears major resistance levels, we could see a push toward the $8,000 mark.
Stay sharp – the storm may just be brewing.
