Ethereum ($ETH ), the second-largest cryptocurrency by market capitalization, has recently shown a small uptick, reflecting a near 1% gain and trading around the $2,031 mark. Despite this modest rise, ETH has not made significant moves beyond the $2,022 support level and reversed in the end, indicating a potential false breakout. Technical analysis suggests that while there is a possibility for a bounce to the $2,050 zone, ETH might continue to experience sideways trading within the $2,000-$2,100 range for the current week.
The reasons behind Ethereum's lack of a breakout at the current level are multifaceted. One possible explanation could be ongoing consolidation after the surge that typically follows a significant upgrade or development within the network. Ethereum's transition to Ethereum 2.0 and its shift to proof-of-stake (PoS) consensus might have been priced in, leading to a plateau in price movement as the market adjusts to these fundamental changes.