Ethereum Price Nears Key Breakout as Volume Drops – Is a Trend Shift Coming?

Ethereum (ETH) is currently trading around $2,690, confined within a narrow ascending channel that's been forming over the past few weeks. While the steady climb appears bullish on the surface, weakening momentum raises concerns about a potential bull trap.

The resistance zone near $2,850 and support around $2,500 are now critical levels to watch. Although ETH has gradually moved higher, trading volume has been declining over the past week. This drop in volume suggests growing trader uncertainty, indicating the current trend may be losing steam.

If Ethereum breaks below the lower boundary of the channel, a short-term pullback to $2,400 is likely, with $2,100 as a potential downside target if bearish pressure intensifies. However, a breakout above $2,850 could signal renewed buying interest and set the stage for a more substantial rally.

Technical indicators also reflect market indecision. The 50-day and 100-day EMAs are converging near the current price level, hinting at a possible inflection point. This compression typically precedes a major price move, but the direction remains uncertain.

ETH’s recent recovery from a prolonged downtrend adds further complexity. While some investors remain cautious, others see consolidation as a sign the market may be preparing for its next leg higher.

Traders should monitor key support and resistance levels closely. A decisive move beyond this channel—either upward or downward—is expected to define Ethereum’s next major trend. With sentiment mixed and volume fading, ETH’s upcoming breakout could offer critical insight into broader crypto market momentum.