Ethereum (ETH) price strengthens at $3,300 as trade hits new high

TLDR

Despite broad market activity and positive regulatory developments, Ethereum has been stuck in the $3,200-$3,500 price range for several months. Estimated consumption volume for Ethereum futures trading has been steadily increasing, which means traders are increasingly risk-averse despite price volatility. Analysis shows that ETH recently made a low at $3,201 and faced resistance near $3,280 with current support levels located at $3,200 and $3,150, high resistance at $3,300 and $3,350 Trading volume increased from $20 billion to $24 billion despite last week's price consolidation.

Ethereum, the second largest by market capitalization, continues to trade in a narrow range between $3,200 and $3,500, less responsive to broader market movements and favorable regulatory developments. The digital asset currently trades at $3,282, down 32% from its all-time high of $4,800 reached by the end of 2021.

Recent data from cryptocurrency analytics platform CryptoQuant shows impressive growth in the Ethereum futures market. The estimated leverage ratio, which measures the average leverage used by futures traders, is constantly increasing. This measure indicates that traders are increasingly risk-averse even though the price is range-bound.

The transaction volume for Ethereum showed a significant growth last week, rising from less than $20 billion to $24 billion last Wednesday. This increase in trading activity has been accompanied by growing interest from market participants despite relatively stable price action.

Technical analysis of Ethereum price action shows a recent low forming at $3,201. The cryptocurrency is currently trading below both the $3,300 level and the 100-hourly simple moving average, indicating short-term bearish pressure.

A key development in the technical structure is a break below the contract triangle pattern at $3,270 support on the hourly chart. This breakdown suggests that the bears may have temporarily taken control of the market's momentum.

The current price action will face immediate resistance near the $3,280 level, which corresponds to the recent move down from the 50% Fibonacci retracement level from $3,363 to $3,201. Beyond that, the $3,300 mark represents another hurdle for buyers.

Market analysts are closely monitoring several key price levels that could determine Ethereum's next major move. The $3,200 level serves as initial support, followed by a stronger support zone at $3,150. Below these levels, $3,120 and $3,050 represent additional support areas that could come into play if selling pressure intensifies.

On the downside, the $3,350 level represents a critical resistance point. A successful break above this level could pave the way to $3,450, with further resistance at $3,550 and $3,580.

Higher leverage ratios in the futures market have created conditions that could lead to increased volatility. When many traders use high capacity, the market becomes vulnerable to large price movements, as structured positions may experience liquidation during sudden price movements.

CryptoQuant analyst ShayanBTC noted that current market conditions could trigger “interesting price action” after Ethereum breaks out of the consolidation zone. Although market sentiment appears to be strong, the direction of this move is uncertain.

The price action of the cryptocurrency comes on the background of extensive market development, including the appointment of a new pro-crypto administration and improved regulatory transparency. However, these positive developments have not yet translated into Ethereum's continued price appreciation.

Hourly technical indicators present a mixed picture. While the MACD (Moving Average Convergence Divergence) indicator is trending higher, the RSI (Relative Strength Index) remains below the 50 level, indicating a short-term downward trend.

Some market observers see similarities with previous price patterns. Crypto analyst Javon Marks recently noted similarities between the current price action and past bull cycles, suggesting that it could lead to future price appreciation.

Trading volume patterns indicate sustained market demand despite price strengthening. An increase in daily trading volume from last week's $20 billion to $24 billion indicates active market participation, although prices are range-bound.