Market Overview
- •Similar to its 2021 pattern, Ethereum is trading close to $3,951 as momentum stalls.
- •Analysts caution of potential new high formation indicating exhaustion of the trend.
- •Price compression hints at potential volatility ahead for ETH markets.
Ethereum remains steady near the $3,900 range, showing muted volatility while traders assess whether recent price action mirrors 2021’s peak structure. Analysts point to identical patterns suggesting the possibility of a double-top formation developing in the market.
Structural Parallels Between 2021 and 2025
A recent chart shared by Ali (@ali_charts) has captured growing attention across the market. It shows two Ethereum price highs that appear extremely close to one another—one in late 2021 and one forming in 2025. This graphical apples-to-apples comparison suggests technical similarity that could be a turning point in Ethereum's current cycle.
The earlier 2021 peak was followed by a swift breakdown as macro pressure intensified, triggering a broader market retracement. The current formation echoes that historical rhythm, showing steep rallies, tight consolidation near the top, and fading momentum in the same zone. The pattern symmetry implies recurring behavioral tendencies in trader psychology, where euphoric buying phases give way to distribution.
Ethereum’s struggle to hold above the $3,800–$4,000 range has reinforced this pattern. That area, previously a strong resistance turned support, is now being retested. A long-term decline below $3,200 would validate the double-top formation which would coincide with possible retracement levels between 2,400 and 2,600, where the previous accumulation had taken place.
Market Consolidation and Volume Weakness
Ethereum is as of writing priced at $3,951.20, a -0.61% decrease in the last 24 hours. Ethereum is still the second-largest cryptocurrency with a market capitalization of 476.9 billion. Another indication of declining speculative pressure and low market liquidity is the trading volume, which fell 37.68% to $23.33 billion over the past day.
Relaxation of trading action is a sign of caution on the part of investors in consolidation. Traders appear to be holding back and awaiting directional confirmation to add more exposure. Ethereum’s circulating and total supply of 120.69 million ETH continues to reflect its deflationary post-Merge dynamics, which have contributed to its reputation as a sustainable asset within decentralized finance.
Technically, the $3,850–$4,000 compression zone defines short-term structure. Price movements have remained subdued, with several failed attempts to breach the upper boundary. The pattern suggests tightening volatility ahead of a potential expansion phase, either confirming continuation or signaling a deeper correction.
Analyst Observations and Market Outlook
Market analyst @innovator of Coinfutura observed that “$ETH is still consolidating around $3,900. On Tuesday, Ethereum tried to reclaim the $4,000 level but didn't manage." This statement comes after widespread opinion among derivatives traders where open interest is level, although momentum indicators depict hesitation.
Despite these short-term challenges, underlying strength in Ethereum remains intact. Structural balance and liquidity profile point to the network still attracting institutional positioning during periods of lulls. If Ethereum were to close firmly above $4,000, the market could turn towards a fresh bullish extension.
But if weakness persists below $3,850, short-term retracement may follow before fresh accumulation kicks in. The next real test will be at the $3,200–$2,900 support level, an historical region of demand that could quite possibly determine if current structure forms an established double top or whether it will carry on with its overall uptrend.