The current Ethereum price action presents an intriguing technical outlook, characterized by a range-bound environment on the higher timeframe, where patience will play a crucial role in determining the next move. The Ethereum price action is currently at a critical juncture. Crypto analyst Minga suggests that to achieve a true cycle bottom, one more downward movement is necessary, with specific levels needing to be cleared before establishing a macro bottom. In the latest technical analysis of the weekly candlestick timeframe chart, Ethereum is observed to be consolidating within a wide macro range. This range is marked by two significant extremes: the 2021 all-time high at $4,877 on the upper boundary and the 2022 bear market low at $878 on the lower boundary.
Crypto analyst Minga states that navigating a range-bound market is straightforward: trade level to level. Interestingly, ETH has adhered to a consistent pattern while trading within this range. The price surged past the 2021 all-time high, briefly rejected above it to establish a new all-time high of $4,946, and has since entered a downtrend. The latest development witnessed Ethereum’s price dipping to an uncharted monthly low near $1,750 in February, prompting buyers to enter the market and drive ETH back up. The bounce, however, did not exhibit follow-through. The rally hit a roadblock in the $2,300 range in March, leading to a retracement and establishing acceptance below $2,151. Currently, Ethereum has returned to trading near the $2,000 mark, a significant psychological threshold. The current situation positions the Ethereum price in a precarious state, often referred to as no man’s land within the range, where the next significant movement could swing either upward or downward.
The analyst pinpointed the $2,151 price level as a significant pivot point. The recent price action made an attempt to reclaim this level but ultimately failed, indicating a clear rejection. The rejection maintains the possibility of bearish continuation for the time being. As long as ETH stays under $2,151, the trajectory seems to favor a downward movement. A successful reclaim, however, would significantly alter the short-term outlook. Minga highlighted a potential move to $2,395 if that scenario unfolds, indicating the presence of a fair value gap.
Minga’s downside expectation is set to unfold in two distinct stages. The initial target is set at $1,537, where a concentration of weekly equal lows (marked as “EQLs” on the chart above) establishes a clear liquidity objective. Minga anticipates that this level will be reached, although $1,537 is unlikely to be the point where Ethereum establishes its macro bottom. The actual bottom target is significantly lower. Minga is keeping an eye on a sweep of $1,384, the previous structural low, as a signal for a legitimate cycle bottom. Minga emphasizes that the $1,190 to $1,148 zone stands out as the most probable area for a macro bottom to materialize.