Ethereum Squeezes Below $3,100 – The Spring is Coiled for a $3,700 Breakout

Ethereum's price action is compressing. The consolidation below a key psychological level is setting the stage for what could be a significant move.

The Setup: A Classic Technical Squeeze

Markets hate uncertainty, and right now, Ethereum is trading in a tightening range. This isn't stagnation—it's energy being stored. The narrowing volatility, with price pinned below the $3,100 mark, is the textbook precursor to a directional explosion. All it needs is a catalyst.

Where the Pressure Points Lie

The immediate barrier is clear. A sustained break and hold above $3,100 could act as the release valve, triggering a wave of algorithmic and momentum buying. From there, the path toward $3,700 becomes the logical next target for bulls—a level that represents not just a price point, but a major reset of market sentiment.

The Bigger Picture: Beyond the Chart

Forget the day traders for a second. This tightening coil coincides with a network that's fundamentally stronger than during its last cycle. Lower issuance post-merge, growing layer-2 adoption, and real-world asset tokenization aren't just buzzwords—they're the structural steel being added to Ethereum's foundation. The chart is just catching up to the code.

The Bottom Line

Low volatility often breeds complacency, which is exactly when the smart money positions itself. While traditional finance is busy debating quarterly earnings of legacy institutions—a quaint practice, really—Ethereum's global, open-source computer is quietly building pressure for its next leg up. The target is $3,700. The trigger is patience running out.

Risk of Pullback Toward Rising Trendline and Lower Support

The current range for ethereum is at $2,990 to $3,000, holding positions just above the 9-day TEMA at $2,958, which has become immediate support. To move further, the region around $3,050 to $3,100 will act as major resistance, as this area has been previously noted for consolidation and breakdown levels. If breached, ETH will move down towards the rising support line or $2,630 to $2,400 support.

RSI indicators have a mixed but encouraging outlook. RSI values are approximately 46-47, reflecting less selling pressure on it. MACD histogram values are decreasing close to zero, reflecting an opportunity for a bullish cross if purchase pressure holds on. Historical volatility measures approximately 47, reflecting that ETH may be preparing to MOVE in a particular direction and not be range-bound.

Ethereum Daily Close Above $3,100 Signals Upside Breakout Zone

Traders will also be looking for a break above $3,100 for Ethereum, which could see it rise towards the levels of $3,650-$3,700, a region that was previously a zone of support but is now a zone of resistance. A return above the declining moving average will increase the strength of the positive case. Alternatively, if it can’t remain above $2,950-$2,900, it could fall towards the levels of $2,700-$2,800.