The crypto market has been experiencing a rebound during today’s session with Ethereum showing strong momentum. The second largest crypto by market cap has been trending sideways displaying an increasing selling pressure on higher timeframes, but today ETH holders seem hopeful of further gains.
At the time of writing, Ethereum is trading at around $2,600 with a 3.5% gain on the past 24 hours. Over the past week, the ETH price shows larger gains with 4.3% returns, the best performance on this timeframe amongst the biggest cryptocurrencies.
Ethereum Price On Brink Of Massive Recovery
According to Daan Crypto, the current price action for Ethereum shows classical signs of compression. This action is usually recorded when an asset is about to experience a massive spike in volatility, either to the upside or the downside.
The analyst pointed out that Ethereum has been trading in a tight range, trapped between two critical levels. If buyers manage to push the price above the first of these levels, sitting at $2,851, then the second crypto by market cap is likely to trend to the upside.
On the contrary, if sellers regain control over the ETH market, and price dips below its current levels, then the price is more likely to return to the bottom of its current range, sitting at $2,168.
Daan Crypto stated the following, warning his followers on taking positions as the Ethereum price consolidates:
ETH Price action is compressing right below this big $2.8K level. If we’d see a convincing break above $2.8K and hold there, that would be a good setup for a move to the cycle highs around ~$4K. If we do lose this current range then $2.1K is the big high timeframe level to watch. No reason to get over excited in either direction until this current consolidation/compression resolves.
ETH Price Rally to Ignite Massive Alt Season
On a separate note, analyst Cantonese Cat showed the Ethereum price dominance chart, used to gauge the percentage of the total crypto market cap represented by ETH. As seen in the chart below, this chart is tightly compressed according to the Bollinger Band indicator.
When these bands compressed, they hint at an upcoming violent move suggesting that Ethereum will abandon its current range soon. If the crypto rallies, then other altcoins are likely to follow and kickstart the beginning of a global upward trend for these assets.
On the upcoming alt season, Jameson Lopp, Co-Founder and Chief Security Officer at crypto custodian CASA, stated the following noting the potential new variables that will trigger it:
Altseason is coming, just not how you think. Instead of being driven by new tokens on crypto exchanges it will be from new equities on tradfi exchanges.
Cover image from Unsplash, ETH/USD chart from Tradingview
