Recently, cryptocurrency analysis firm MakroVision released a new assessment of Ethereum (ETH) technical prospects. According to the analysis, as Ethereum's price approaches a key resistance area once again, the short-term market structure is tightening.
Based on the charts shared by MakroVision, the ETH price has faced multiple rejections around the $2130 resistance area and is encountering selling pressure at this level. However, the Ethereum price remains above lower support zones. This indicates that the market is operating within a gradually narrowing price range, between support and resistance.
Analysts point out that a pattern of higher lows is forming on the Ethereum chart in the short term. Each time there is a pullback, the price finds support at higher levels, suggesting that the repeated testing of this resistance area shows increasingly tightening volatility. Such market conditions are typically observed before a strong breakout.
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According to MakroVision, as long as the ascending bottom structure remains intact, the probability of Ethereum breaking through the $2130 resistance level will increase. Once this level is clearly breached, it could trigger a strong rebound in ETH prices, paving the way for further increases to the next resistance area.
On the other hand, analysts warn that if the price is rejected again in this area and the ascending trend structure breaks down, the short-term outlook could weaken once more. In this scenario, Ethereum may face greater downward pressure.