- Ethereum’s long consolidation above major support strengthens its bullish foundation for future upward movement.
- Extended sideways trading signals strong investor confidence and potential momentum for Ethereum’s next bullish phase.
Ethereum remains firmly above its support area, and for most analysts, this is not simply a directionless flat move.
According to analyst Master Ananda, extended periods of ETH sideways movement actually strengthen the price’s foundation.
“The longer it stays at support, the stronger it becomes,” he said.
As of press time, Ethereum is trading at about $4,008, up slightly by 0.35% in the last 4 hours, with a market cap of around $482.87 billion and a daily trading volume of $4.76 billion.
Technically, Ethereum’s key support area, visualized by the gray zone, is not only based on chart visuals but is also supported by a combination of Fibonacci levels and medium-term moving averages. As long as the price remains above this area, the long-term outlook remains bullish.
However, two days ago, CNF reported a surge in long liquidations on Binance, indicating overexposure by highly leveraged traders. This pressure makes Ethereum now fully dependent on the strength of its support zone to avoid a deeper liquidity-driven decline.
Holding the Line: Ethereum’s Quiet Path Toward $5,600
According to Master Ananda, long periods of consolidation like this should be met with patience. He stated that the longer Ethereum moves at a support level, the stronger its fundamental position is for continuing its long-term uptrend.
In other words, every time ETH makes a small retracement, it could be a buying opportunity for more patient investors. Two days in the red on the chart? According to him, that’s nothing to worry about.
“The key isn’t to rise quickly, but to be strong while rising,” he wrote optimistically.
In his analysis, Ananda sees the potential for ETH to surge beyond the $5,600 level.
Furthermore, he highlighted an interesting phenomenon in the altcoin market. While Ethereum and Bitcoin are moving sideways, many smaller altcoins are showing extraordinary growth—some have surged 50% to 80% in just one day, and others have risen 500% to 800% in the past three weeks.
Furthermore, a massive influx of over $3 billion in USDT into Asian exchanges between October 21st and 25th also reinforces the assumption that investors from regions like China and South Korea are preparing for the next bullish phase.
In recent days, on-chain data has also shown that Ethereum whales and sharks have resumed accumulation. This massive buying activity indicates a return to confidence in the long-term prospects of the Ethereum network.
Meanwhile, softening US inflation has revived expectations of interest rate cuts. If that occurs, global liquidity conditions could improve—and the Ethereum ecosystem could potentially receive a significant boost from market demand.