Ethereum coil tightens: ETH set to explode from Bollinger squeeze

As things are starting to look up in the major part of the cryptocurrency market, Ethereum (ETH) may be gearing up for a significant move as technicals, specifically a classic ‘Bollinger Bands squeeze,’ point to rising volatility ahead.

Indeed, popular crypto trading expert Ali Martinez has observed this squeeze, a setup that often precedes explosive breakouts in either direction as it measures volatility through standard deviations around a moving average (MA), in his analysis shared in an X post on September 10.

What’s happening to Ethereum’s Bollinger Bands?

As it happens, the Bollinger Bands indicator has contracted sharply on Ethereum’s 12-hour chart, suggesting the market is in a period of unusually low volatility, sort of a calm before the storm scenario that historically ends with a decisive surge or breakdown. In the professional trader’s words:

“Expect a big move for Ethereum $ETH soon as the Bollinger Bands squeeze!”

At the time of Martinez’s post, ETH was trading at around $4,304, consolidating within a narrowing range. The last major squeeze of similar magnitude, observed in late July, preceded a rally that carried Ethereum from below $3,000 to highs above $4,800 in just a matter of weeks.

Since the crypto expert’s post, the second-largest asset in the crypto industry by market capitalization has increased even further, to $4,423, indicating an increase of 2.46% in the last 24 hours, a 0.88% advance across the previous week, and adding up to the 2.88% gain on its monthly chart.

Traders are now eyeing whether the upcoming move could mirror that bullish momentum or instead trigger a downside reversal. 

While the indicator does not predict direction, the prevailing trend often offers a clue. In this case, ETH has been trading sideways after failing to break above $4,800 resistance multiple times in August, while also finding consistent support around $4,200. This tug-of-war suggests that whichever side wins the battle could spark sharp follow-through.