Brace For Volatility After Ethereum Moves Outside this Range

Key Takeaways

Ethereum (ETH) trades inside an ascending parallel channel.
Ethereum has consolidated in a very tight range since May 12.
When and how will Ethereum’s tight range resolve?

Ethereum fell 66% since December 2024, reaching a low of $1,383 on April 9, 2025.

An over 100% increase followed until June when Ethereum finally outperformed Bitcoin.

However, the possibility of another decline looms if ETH closes below its channel’s support trend line.

Ethereum Consolidates in Channel

The daily time frame price analysis shows that Ethereum increased by nearly 110% between April 9 and June 12.

However, the ETH price fell after reaching a high of $2,880, confirming a deviation above the 0.5 Fibonacci retracement resistance level (black circle).

Try Our Recommended Crypto Exchanges

Sponsored

Disclosure

MEXC

Opened in 2018

Promotions

Deposit $100, Get an Extra $300 in GOLD!

Coins

Claim Offer

Bitunix

Promotions

Receive up to $100,000 worth of exclusive gifts for newcomers upon registration.

Coins

Claim Offer

ChangeNow

Opened in 2017

Promotions

Experience a 1-minute swap on a non-custodial platform.

Coins

Claim Offer

Today, the ETH price trades at an ascending parallel channel’s 38-day-old support trend line.

Such channels usually contain corrective movements, meaning an eventual breakdown is likely.

Ethereum trades in the channel’s lower portion, making this possibility even more plausible.

Additionally, technical indicators are bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling.

Ethereum Channel — ETH/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView

The RSI is below 50 while the MACD is negative, both signs of a bearish trend.

Therefore, the daily time frame analysis suggests Ethereum’s price will break down from the channel.

Ethereum Breakdown Incoming

Ethereum’s wave count supports the bearish prediction from the price action.

The wave count shows a completed five-wave upward movement since April with an extended wave three.

Waves one and five had the same length, giving more credence that this is the correct count.

ETH Wave Count — ETH/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView

If so, Ethereum has started an A-B-C correction that will cause a breakdown from the channel.

Ultimately, Ethereum can settle between the 0.5-0.618 Fibonacci retracement support levels at $1,956-$2,132 before moving to new highs.

Ethereum Volatility Incoming

Ethereum has consolidated in a tight range without volatility in May.

The wave count and price action suggest a breakdown is likely.

If one occurs, ETH could find support between $1,956-$2,132 before bouncing.

You May Also Like

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

[email protected]

X.com

Ethereum Price Volatility Incoming as 38-Day Range Comes Close to Completion

Ethereum Consolidates in Channel

Ethereum Breakdown Incoming

Ethereum Volatility Incoming

Related