Ethereum consolidates above resistance, but bulls must act quickly

Ethereum is currently trading around $2.450 and consolidating just above a resistance zone that previously acted as a ceiling. Analyst DaanCrypto argues that bulls need to act quickly, otherwise the risk increases that the price falls back below that zone and the recent rally turns out to have been a major liquidity grab.

Ethereum is available at OKX and Bybit.

In short:

• Ethereum is consolidating around $2.450, just above a former resistance zone.
• Analyst DaanCrypto warns that bulls need to set new local highs this week.
• If they fail to do so, a rejection towards the resistance is a realistic scenario.

Consolidation above resistance: reason for caution

The daily chart of Ethereum shows that the price rebounded sharply from the support zone around $2.000 in late August, well above the daily 200-day moving average of approximately $2.015. That recovery brought the price to its current level in a short period, with the previously strong resistance around $2.330 to $2.440 now serving as support.

DaanCrypto points out that consolidation above a former resistance is positive in itself, but that it comes with a time limit. When the price moves sideways for too long without further upside, the risk grows that the level will give way after all.

Bulls must break through before the end of the week

According to the analyst, the scenario for bulls is clear: Ethereum must reach new local highs before the end of this week. Earlier this month, Michaël van de Poppe also pointed to important support levels for Ethereum on the higher timeframes.

If that breakout fails to materialise, DaanCrypto expects a rejection that could push the price back below the resistance zone. That would put the recent rally in a completely different light: not as a sustainable bottom, but as a temporary peak that attracts short sellers and puts buyers under pressure.

The daily 200 EMA currently stands at around $2.150 and remains well above the price, indicating that the longer-term downtrend has not yet been structurally reversed. Whether the bulls manage to change that picture this week will therefore become a direct indicator for the direction of Ethereum in the shorter term.