Ethereum’s Accumulation Phase Approaches Conclusion While ETH/BTC Stays Strong

Ethereum is currently in a lengthy accumulation phase, indicating that the market could be nearing a significant transition. As the ETH/BTC pair successfully holds key long-term support levels, the underlying structure suggests a growing strength, which often foreshadows a rotation and a significant upcoming movement.

Key Takeaways

Ethereum is in a long accumulation phase, suggesting an impending market shift.
The inverted monthly chart shows a recognizable cycle with diminishing volatility.
The initial resistance for Ethereum is projected between $3,800 and $4,500.
The ETH/BTC pair is crucial to monitor, as it indicates market strength and potential upcoming movements.
Market conditions show stability, with no signs of panic or breakdown, suggesting a robust foundation for future gains.

Ethereum

Understanding Ethereum’s Inverted Monthly Chart: Late-Stage Accumulation

EGRAG CRYPTO recently shared insights demonstrating that Ethereum's inverted monthly chart reveals a recognizable cyclical pattern, albeit with clear changes. Each market cycle appears to follow a similar rhythm; however, as the asset matures, the volatility diminishes, and the price movement becomes steadier.

During the first cycle, Ethereum went through a brief accumulation phase followed by a sharp decline. The second cycle saw an extended accumulation period, leading to a more gradual downturn. Now, in the ongoing third cycle, the accumulation phase has extended significantly longer, indicating that any future corrective phase is likely to be much less severe.

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Source: Chart from Egrag Crypto on X

It’s crucial to recognize that this chart is inverted; thus, what looks like a decline here actually represents a breakout on a standard price chart. This current structure indicates that the accumulation phase is nearing its end, and the market may soon be on the verge of a significant movement. While this potential movement is expected to be less explosive than in earlier cycles, it is anticipated to be more orderly.

From a pricing perspective, the initial resistance is expected to be in the range of $3,800 to $4,500. Successfully flipping this zone into support could pave the way for a rise to the $6,000 to $7,500 range. However, the main risk remains a deeper retest towards the $1,800 to $2,200 level before continuing upward.

The Importance of Monitoring ETH/BTC

A recent analysis by CyrilXBT highlighted that the ETH/BTC chart is one of the crucial ones to observe right now. Ethereum is continuing to hold onto the 2018 cycle support, consistently recording higher lows while the price action tightens just below important resistance levels. This kind of compression typically signals that the market is gearing up for a significant move, rather than a breakdown.

Notably, there is no indication of panic or structural damage within the market. Sellers have struggled to create a decisive breakdown, while buyers persist in stepping in at higher levels, reinforcing the strength of the underlying support. The longer this base remains stable, the more significant any eventual breakout or rotation will be.

At this point in the cycle, Ethereum does not need to outperform drastically. Simply maintaining its relative value often signals the early stages of capital rotation. Historically, a consistent performance in the ETH/BTC pair tends to precede periods when Ethereum gains momentum and begins to take the lead.

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BTC trading at $3,094 on the 1D chart | Source: ETHUSDT on Tradingview.com