Ethereum's (ETH) price has been struggling to break from the resistance at $2,698 for over six weeks, with repeated failed attempts to secure a close above this level. This resistance has kept the altcoin king in consolidation, preventing further gains.
However, market participants expect October to be the turning point for Ethereum, possibly setting the stage for a significant rally toward $3,000.
The sentiment around Ethereum is notably bullish, especially among large investors. In the past month, addresses holding between 100,000 and 1 million ETH have accumulated over 600,000 ETH, valued at more than $1.57 billion. This accumulation has pushed their total holdings to a three-month high, signaling strong confidence in a potential price increase.
These large investors, often referred to as whales, are typically seen as market movers. Their growing holdings indicate that they expect Ethereum to break out of its current consolidation. If this pattern holds, their influence could be a significant factor in ETH’s ability to rally beyond its current resistance.
Ethereum’s macro momentum also supports the possibility of a rally. The Relative Strength Index (RSI), a key technical indicator, is hovering in the bullish zone but remains far from the overbought territory. This suggests that while ETH is experiencing positive momentum, there is still room for further growth without triggering a correction.
Additionally, the RSI is well above the neutral line, further reinforcing that Ethereum has the potential to rise. With no immediate signs of the market overheating, ETH is positioned to continue its upward trajectory if the conditions remain favorable.
Ethereum is currently trading at $2,634, remaining consolidated between $2,698 and $2,546. This range has been a critical zone for Ethereum, acting as both support and resistance over the past few weeks. Breaking out of this range is essential for ETH to advance toward $3,000.
Flipping the $2,698 level into support is crucial for Ethereum to reach the next resistance at $2,930, bringing it closer to $3,000. The current market sentiment and macro momentum suggest that a breakout could be imminent, setting the stage for further gains.
However, the consolidation could persist if Ethereum fails to breach the $2,698 level. In the event that selling pressure increases, ETH may drop below $2,546, invalidating the bullish outlook and delaying its rally to $3,000.
