Ethereum Trades Sideways as Market Watches for Directional Break

Ethereum is trading near $2,915 at the time of writing, continuing a period of consolidation after failing to reclaim higher resistance levels earlier this month. While downside momentum slowed, price action remains capped below key technical zones.

Today’s session reflects a balance in structure but no conviction yet. Moreover, buyers are defending local support, but upside follow-through remains limited, suggesting the market is still waiting for a clearer signal before committing to a directional move.

ETH Holds Key Support as Price Searches for Momentum

On the daily chart, Ethereum continues to trade below the $3,200 – $3,300 resistance zone, an area that previously acted as structural support. Also, multiple rejections from this region confirm overhead supply.

Therefore, this level must be reclaimed to shift momentum higher. The price is currently holding above the $2,770 – $2,800 support range, which aligns with prior demand zones and longer-term moving averages.

Keep in mind, this has prevented further downside acceleration, but the lack of higher highs keeps ETH locked in a consolidation phase.

However, the 4-hour chart adds further context. Indeed, recent price action shows shallow rebounds followed by renewed selling pressure, indicating that rallies are being sold into and not expanded.

On the other hand, volume remains moderate, suggesting participation is present but not aggressive. This points to stabilization driven by positioning adjustments, yet no signs of substantial spot demand.

Additionally, the market seems to be cautious. From a derivatives perspective, Ethereum open interest sits near $38.6 billion, with only modest changes over the past 24 hours.

Similarly, funding rates remain slightly positive but muted. Therefore, indicating leveraged positioning is balanced in both directions.

Ethereum vs Bitcoin (ETH/BTC)

Ethereum’s Performance Sets the Tone for Altcoins

Any sustained altcoin rally typically requires Ethereum to outperform Bitcoin on a relative basis. However, the ETH/BTC pair shows the price remains range-bound near 0.033 BTC. Struggling to reclaim higher resistance levels that would signal renewed relative strength.

While ETH/BTC is holding above recent lows, it has yet to establish a clear higher-low structure or breakout. Moreover, this might limit the case for broad altcoin expansion at this stage.

Without a decisive move in ETH’s favor against Bitcoin, capital rotation into higher-beta assets remains constrained.

At the same time, for an alt rally narrative to gain traction, ETH would need to reclaim key resistance on both the USD and BTC pairs. Accompanied by stronger spot participation.

Until then, altcoins are likely to remain selective. Indeed, the setup reflects stability, but not yet the conditions required to ignite a wider move across the altcoin market.