Ethereum remains in a prolonged accumulation stage, suggesting that the market might be approaching a critical inflection point. The ETH/BTC pairing continues to defend long-term support levels, indicating underlying strength building beneath the surface. This quiet consolidation often precedes significant market rotations and can lead to a decisive price move in the near term.
An analysis of Ethereum ’s inverted monthly chart reveals a familiar cyclical pattern that has evolved as the asset matures. In earlier cycles, Ethereum experienced shorter accumulation phases followed by sharp declines, highlighting the market’s more volatile early stages. Currently, the accumulation period has extended considerably, implying that any corrective retracement is likely to be relatively shallow. The inverted nature of the chart signals that a breakout on the traditional price chart may be imminent, with current market structure suggesting an approach toward a breakout rather than a deeper retracement.
Projected resistance levels lie between $3,800 and $4,500; success in turning this zone into support could pave the way toward a target range of $6,000 to $7,500. Conversely, there remains a significant downside risk, especially if a deeper retest occurs between $1,800 and $2,200, which could precede a broader upward trend.
The ETH/BTC relationship remains a critical indicator at this stage. Despite tight trading ranges, Ethereum continues to defend the 2018 cycle low, consistently forming higher lows while consolidating near crucial resistance levels. This pattern of market compression tends to signal a buildup phase, where a larger wave of movement is likely forthcoming.
Importantly, there are no indications of panic or structural weakness, as sellers have not caused decisive breakdowns, and buyers are steadily stepping in at higher levels. Maintaining this support is vital; a stable base often sets the stage for future bullish moves. Historically, periods of sustained stability in this pairing have heralded phases where Ethereum begins to lead the market once momentum shifts back in its favor.
