Ethereum Coils Between $2,950–$3,400: The Calm Before a Monster Rally?

Ethereum's price action is compressing like a spring. The second-largest crypto asset has entered a decisive consolidation phase, its trading range tightening dramatically between two critical levels. This isn't just noise—it's the market holding its breath.

The Squeeze Play

All eyes are on the $2,950 support and the $3,400 resistance. Each test of these boundaries gets met with fierce counter-pressure, squeezing volatility out of the market. This classic technical pattern often precedes a significant directional breakout. The longer the squeeze, the more explosive the eventual move tends to be.

Fueling the Fire

Fundamentals are aligning to support a bullish resolution. Network upgrades continue to slash fees and boost throughput, while institutional adoption isn't just a talking point anymore—it's happening on-chain. The ecosystem isn't waiting for permission; it's building the next generation of finance right under the noses of traditional banks.

The Impending Break

Traders are positioning for a volatile exit from this range. A sustained hold above $3,400 could trigger a cascade of algorithmic buying and renewed bullish sentiment. Conversely, a failure at support would force a painful reassessment. The market's patience, much like a trader watching red candles, is wearing thin.

One thing's clear: this consolidation isn't indecision. It's accumulation. While Wall Street debates quarterly earnings, Ethereum's network settles more value than some small countries. The breakout is coming—it's just a question of which wall breaks first.

Ethereum Shows Wyckoff Accumulation Pattern

Ethereum’s current pattern appears to be the type of Wyckoff Accumulation pattern described by Crypto Tice. The marketplace is absorbing supply quietly while distributing weak market participants through market cycles, while maintaining strong support levels.

In the history of such accumulation phases, the building of market momentum may take several weeks to build before the giant players begin their sustained trend.

The Wyckoff strategy involves a number of procedures. Phase A marks a pause in the previous decline in the Selling Climax and the Primary Test. Phase B demonstrates a sideways storage of the commodity in large quantities, with the price challenged frequently but restrained.

Phase C employs a planned Spring below the level of the supporting price to rout the weak speculator. Phase D showcases true strength in the breakout above the resistance levels, while Last Points of Support are formed on the decline.

The price action on Ethereum is currently in line with the end of Phase D. What this implies is that the market may be gearing up for a stronger positive trend, in which the previous resisters can now provide strong support.