• Ethereum consolidates beneath the $2,800 resistance, a breakout could push ETH towards $4,000, while a pullback could occur to $2,100.
• Trading volume surges 84%, showing growing demand for Ethereum—markets anticipate big price swings ahead.
• Analysts see Altcoin market cap signaling bullish moves, and Ethereum could experience a rally, but caution remains.

Ethereum (ETH) is now consolidating just beneath an important resistance area of $2,800. The focus of traders is whether Ethereum will break through this level or encounter a downswing. A clear break above $2,800 would send it higher, with some analysts speculating that it may rally to trade as high as the $4,000 territory. However, if ETH cannot break above this level, it may give a pullback to lower levels.

The market is currently compressed, and Ethereum is being traded within specific limits. A move to the upside of the $2,800 territory can be an indication of strong movement. However, if ETH breaks below this, the next important support level, at $2,100, needs to be closely monitored. This price has been observed to act as a significant turning point in the long term.

Source: X

The analytical platform Coinglass reports that the volume of trading has grown by 84.28%, accounting for the volume of trading in data futures, to $75.75 billion. The spike suggests that there is increased demand for Ethereum, and traders are positioning themselves for a significant shift in price. The open interest also increased by 5.48% to reach $36.47 billion.

The OI-weighted funding rate in the ETH is at 0.0039%, proving further that additional traders are placing new bets. The rising trading volume is an indication of an impending breakout since more traders are positioning themselves ahead of the larger price swings. The increased activity shows that the traders expect to see more significant volatility in the Ethereum price action.

Source: Coinglass

Michael van de Poppe pointed out that the Altcoin market cap is indicating a bullish move that will occur on its platform. According to him, the cycle of Ethereum and other Altcoins is not at all over. The analysis points toward the possibility of strong rally going forward as the market interest and momentum are rising.

Source: X

Though it is also showing signs of a bullish rally, analysts caution investors on trusting themselves too much either way. The recent periods of consolidation in Ethereum show a lack of a decision in the market. Until this of consolidation has been resolved, it is not clear what the price movement will be. Traders are encouraged to wait until the breakout or breakdown is made clear before making their significant moves.

The future of the Ethereum price will be determined by whether the cryptocurrency moves higher to overcome the resistance at $2,800 or experiences further decline. As the volume of futures trading increases alongside the possibility of an Altcoin rally, Ethereum may be about to experience a thrilling period of price action. Nevertheless, market observers are warning that the market might likely take a different direction.

Read More: Crypto Market Buzz: Cardano, Huma Finance, Monero & Top Coins Driving the Market