Ethereum (ETH) Price Is Closely Following Bitcoin (BTC) and Consolidating Tightly Within a Narrow Range

Despite this, the possibility of a breakout remains higher while the timeline could be extended beyond this month

The Ethereum price has been closely following the star crypto and is consolidating tightly within a narrow range.

Despite this, the possibility of a breakout remains higher while the timeline could be extended beyond this month.

The Ethereum price has been diligently striving to maintain its rally above the pivotal range, with $1800 emerging as a new support level for the token. In contrast, the BTC price has been making persistent attempts to break out of the consolidated zone, which could explain why the ETH price does not seem to be in a hurry for it.

Consequently, the trader’s focus on the token has waned to some extent, and the volume has experienced a sudden decline. This factor could introduce some uncertainty regarding whether the price will ignite a breakout this month or continue its confinement within the consolidated zone.

Since the last week of April, ETF inflows have been quite significant, highlighting the rising interest of institutions in Ethereum, as they have been accumulating more than 3600 ETH. Furthermore, according to some reports, a whale has sold 14.38 WBTC, valued at approximately $1.4 million, to buy nearly 758 BTC at the base price of $1836. This activity occurred after a period of three years of inactivity. These developments suggest an upcoming bullish price action, as the current trade set-up alludes to a substantial bull run, which may yield even greater gains compared to Bitcoin.

The monthly chart of ETH reveals that the price has encountered huge upward pressure during the past month, forcing it to close the trade on a bearish note. However, the bulls have managed to keep up the rally inside the decisive symmetric triangle, despite multiple attempts by the bears to drag the levels lower. The RSI is also maintaining a descending trend and has been failing to rise above the trend line, indicating that the bears still hold significant dominance. Nevertheless, the DMI levels have converged, signaling a drop in volatility and a major squeeze, with the levels aiming for a bullish crossover.

The ETH price seems to be at the end of a mid-term correction, and the price is about to trigger a strong rebound from the previous lows. Therefore, the bottom appears to be in, which may lead to a good ‘Dead-cat’ bounce. This bounce could further lead to a new ATH, but the initial target to achieve could be around $2500. If the price sustains within the rejection zone between $2700 and $3200, the bull run may extend to new highs.