May 2022: BTC & ETH Consolidating in Trading Range | Major Move Coming: Up or Down

2 min read

Bitcoin and Ethereum On Brink of a Major Price Move

Bitcoin, Ethereum Poised for Volatility

Shutterstock cover by NeoLeo

Key Takeaways

  • Bitcoin is in a no-trade zone between $28,870 and $30,750.
  • Likewise, Ethereum is stuck between $1,960 and $2,145.
  • Only a break above support or below resistance can resolve the ambiguity.

Bitcoin and Ethereum continue to consolidate while searching for new catalysts that will help them gain the momentum needed to break out.  Absolutely no one knows the direction in which the market will move.  History provides a possible outcome; price patterns are one indicator.

You know that there will either be more panic selling or a Bull run that starts, and turns massive.  Investor fear and sheep mentality prominent in both a huge rise, or fall, in price.

BTC & ETH Consolidating in Trading Range – May 2022

Bitcoin and Ethereum remain stagnant, trading within a tight price range, as traders cannot decide on whether prices will go up or down.

Data from Coinglass shows that market participants are divided on what the future holds for Bitcoin and Ethereum. Roughly 50% of all accounts with open BTC positions across all major crypto derivatives exchanges are net-long, while the other 50% are net-short. Similar trading history can be seen around ETH.

Bitcoin Long/Short Ratio
Source: Coinglass

The lack of certainty among market participants about the future price action is wearing down Bitcoin and Ethereum.

The top two cryptocurrencies by market cap continue to consolidate within no-trade zones, waiting for a spike in volatility. The longer BTC and ETH get squeezed, however, the more prominent the price movement that should follow. But the problem is determining the direction in which the trend will resolve.

Bitcoin, Ethereum Technical Analysis

For instance, Bitcoin has defined a clear support floor at $28,870 and a stiff resistance barrier at $30,750. A decisive four-hour candlestick close outside of this range will determine where BTC will go next. The formation of a symmetrical triangle suggests that upon the break of the stagnation period, prices will move by 17.70%.

Under such circumstances, a breach of the $30,750 resistance level might result in an upswing to $35,300, while dipping below the $28,870 could see Bitcoin take a nosedive to $24,400.

Bitcoin price chart
Source: TradingView

Ethereum is also showing ambiguity as long as it continues to trade between $1,960 and $2,145. Only a sustained four-hour close below support or above resistance can help determine where ETH will go next. It is reasonable to remain on the sidelines waiting for the trend to resolve until that happens.

The reason to remain patient with Ethereum is that it appears to be forming an ascending triangle on the four-hour chart. The height pattern’s y-axis suggests that a break of the hypotenuse at $1,960 or the x-axis at $2,145 could result in a 16.57% price movement.

Ethereum price chart
Source: TradingView

Bitcoin and Ethereum have yet to find new catalysts to help them gain the trading volume needed to break out. Meanwhile, other coins like Fantom have managed to post significant gains after finding the “it” factor needed in form of a new proposal from Andre Cronje.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods or services mentioned in this article.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. is not an investment advisor. We do not give personalized investment other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

Via this site