Ethereum (ETH), after a strong 46.65% rally in recent months, has entered a phase of moderation, with its price slipping 0.13% in the last 24 hours. This slight slowdown might indicate the continuation of an accumulation phase—a pattern that often precedes major price moves. But how long will ETH remain in this holding pattern?

Accumulation and the Potential for a Breakout

Analysts suggest that ETH is currently trading within a symmetrical triangle, a pattern commonly associated with accumulation. This phase typically occurs when buyers discreetly build positions, expecting future gains. Historically, symmetrical triangles often precede rallies as accumulation transitions into rising demand.

Crypto analyst Crypto Jelle has projected that if ETH breaks out of this pattern, it could climb to levels as high as $8,500. However, the timing of such a move remains uncertain, as market participants are still actively bidding at lower price levels, signaling hesitation for an immediate surge.

Market Activity Highlights Mixed Sentiment

While Ethereum’s price oscillates within the bounds of the triangle, the market has seen a rise in long liquidations, doubling compared to short liquidations. This $31 million spike suggests the market could be priming for a downward correction before any significant upward movement.

Adding to the complexity is an uptick in active addresses, which recently surged from 365,000 to over 406,000. This increase indicates heightened market activity, with many holders choosing to lock in profits, further capping ETH’s ability to sustain a rally.

Profit-Taking Slows the Momentum

Profit-taking remains a key obstacle to ETH’s upward movement. CryptoQuant’s Taker Buy Sell Ratio currently stands at 0.85, revealing that selling volume continues to outweigh buying interest. This imbalance has contributed to ETH’s recent price declines, limiting its potential for an immediate breakout.

Is Now the Time to Act?

Ethereum’s current accumulation phase presents both challenges and opportunities. For traders, this could mean preparing for a potential breakout, particularly if the symmetrical triangle pattern holds. Long-term investors might view this phase as a chance to accumulate ETH at discounted levels, betting on future growth.

However, caution is warranted. The ongoing profit-taking and liquidations suggest that the market may still trend downward in the short term before any meaningful rally materializes.

This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research and consider your risk tolerance before making any investment decisions.