7. Brief Ethereum market analysis: contracting volume, trading sideways; short-term trend remains weak

Good morning, everyone. Let’s take a look at the current market conditions.

In the early morning, this dip fell to 1802 and then quickly rebounded, with the bounce briefly reaching as high as 1870. But afterward, the buying pressure was clearly not sustained; trading volume kept shrinking, and price has started to move in a sideways “grind” pattern. Right now, the price is hovering above the Bollinger middle band at 1834, but the problem is obvious—there’s no volume.

A rebound without volume is basically just messing around—everyone understands that. So my take on the current market is: weak consolidation, and in the short term there is still a need for a further pullback.

The key area to watch above is 1849. This level is the short-term line that separates long and short outcomes. If price rebounds up to here, it will most likely face rejection and fall back—because the volume can’t keep up, it won’t be able to hold, and it’s effectively handing the bears easy wins. On the downside, first watch the Bollinger middle band support at 1834. If that level can’t hold, the next stop is 1820. If 1820 breaks too, then you’ll need to retest the early-morning low at 1802.

To turn the current weak situation around, the only way is a high-volume breakout that not only breaks through 1849, but also holds it firmly, along with additional incremental capital coming in from outside the market to push it. But judging from the current tape, where volume has been continuously contracting, the chances of a strong rally pushing through in the short term are not high.

For those holding long positions, there’s no need to panic too much, but you do need patience—this is not a good area to chase or to cut aggressively. Repeated back-and-forth churn within the range is very likely. If your position size is heavy, you can consider trimming somewhat near 1849 to control your risk exposure.

The market is moving slowly, so we’ll wait patiently for the direction to become clear. If anything changes, I’ll update you right away.

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Leave your thoughts in the comments: do you think this wave is building a base, or is it a continuation of the downtrend? 🧐