ETH Consolidation Tightens Ahead of Potential $3,000 Breakout

Ethereum's price action is currently in a period of consolidation after reaching an eight-month high of $2,660. The altcoin has pulled back and is trading around $2,474 as of writing, with buyers continuing to defend higher lows.

This has created a tightening triangle, reflecting a balance between bulls defending lower prices and bears preventing further increases. The shape of this triangle looks similar to an earlier one that preceded a 30.91% increase, adding credibility to the possibility of another large upside.

The reduced available exchange supply, with over $300 million worth of ETH leaving exchanges before the consolidation, has helped support the advance toward $2,660. Now, ETH needs to break the triangle's upper boundary to revive that momentum, potentially targeting $3,000.