ETH Breakout Hinges on Sustained Demand Amid Tightening Liquid Supply

Ethereum (ETH) is currently in a period of consolidation after reaching an eight-month high of $2,660.

The altcoin has since pulled back and is trading around $2,474 as of writing, with buyers defending higher lows and preventing further decreases.

A tightening triangle has formed, reflecting the balance between bulls and bears, similar to a previous triangle that preceded a 30.91% increase in just three days.

The reduced exchange supply and accumulation of ETH by whales before the consolidation are contributing factors to the current price action.

To revive momentum, Ethereum needs to break through the upper boundary of the triangle, which could target $3,000.