Ethereum Winding Up For A Violent 30% Move

Ethereum (ETH) is entering a critical phase as price action tightens into a well-defined consolidation range, setting the stage for a potentially sharp move.

According to the analysis shared by popular cryptocurrency trading specialist Ali Martinez in an X post on January 5, Ethereum’s current structure suggests the market is preparing for a roughly 30% price swing once the pattern resolves.

Rather than signaling weakness, the compression reflects balance, a state that often precedes expansion as volatility returns.

Why Ethereum’s Current Structure Matters

On the daily chart, Ethereum has formed a narrowing triangle, with lower highs pressing against rising support. This type of pattern typically indicates declining volatility and growing tension between buyers and sellers.

As the price approaches the apex of the structure, the range narrows further, leaving little room for sideways movement. When that pressure releases, the resulting move is often swift and decisive.

Consolidation Is Not Indecision

Although consolidation phases can feel uneventful, they often represent accumulation rather than exhaustion. Ethereum has held above key support levels throughout the pattern, suggesting sellers have failed to force deeper downside.

At the same time, upside attempts have been capped, keeping price contained and liquidity concentrated. This combination creates the conditions for a larger directional move once resistance or support finally gives way.

A 30% Move Cuts Both Ways

Martinez emphasized that the setup doesn’t guarantee direction, only magnitude. A breakout above resistance would likely trigger momentum buying and renewed trend continuation, while a downside break could accelerate selling as stops are hit.

That uncertainty is precisely what makes the structure important. Markets rarely remain this compressed for long, and Ethereum’s volatility profile suggests expansion is approaching.

What Traders Are Watching Next

For the time being, the market’s largest altcoin is trading at $3.165.74, which represents an advance of 0.73% in the last 24 hours, a 6.53% rise across the previous seven days, and an accumulated gain of 4.42% on its monthly chart, per the most recent price data.

As Ethereum trades closer to the end of the triangle, timing becomes critical. The next few sessions may determine whether buyers regain control or sellers force a breakdown.

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