Ethereum, the cryptocurrency with the second-largest market capitalization, is about to enter a state of unnerving quiet. The chart is starting to show the inertia caused by the broader price action even though the asset is still above important short-term moving averages. ETH is currently trading at about $1,825, and it is having difficulty convincingly breaking through local resistance levels.

Ethereum’s volume profile is the most obvious cause for concern. Over the past few weeks, daily trading volume has drastically decreased, and it is currently close to historic lows. It appears from this volume collapse that market players are unsure of themselves and that neither bulls nor bears are in charge. A market that is waiting for a catalyst and has run out of momentum is indicated by this classic signal.

Volatility has also collapsed. There are no indications of overbought or oversold conditions and the Relative Strength Index (RSI) is currently in neutral territory just below 60. That is consistent with the sideways price movement that ETH has shown since the middle of April. ETH is having difficulty sustaining any sort of long-term breakout momentum with the 50 EMA hovering just above the current price levels.

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Nevertheless, this quiet could be misleading. Just below a crucial psychological level of $1,900 to $2,000, Ethereum is consolidating. Consolidation periods like these frequently precede abrupt directional movements. The absence of buying volume severely undermines the bullish case, but the current setup leaves open the possibility of an abrupt reversal.

Ethereum’s upside potential is limited unless there are macroeconomic catalysts or a spike in on-chain activity. In the meantime, a decline below the 50 EMA (~$1,765) would probably trigger a new round of selling, pushing ETH back toward $1,600. The next significant spike could determine the course of the subsequent leg, so investors should closely monitor volume.