Ethereum Price Consolidation Between $4.2K and $4.5K Indicates Potential for Breakout or Breakdown

Current Trading Range: Ethereum is trading within a narrow range of $4,200 to $4,500, with decreasing volatility indicating a potential for significant price movement in either direction.

Support Weakening: The $4,200 support level is showing signs of weakness, with diminishing buying strength, which could lead to a breakdown and a potential reset near the $3,900 level.

Market Dynamics: Ethereum's supply on exchanges is at extreme lows while short positions are high, creating conditions for a sharp market move depending on whether the price breaks higher or lower.

Cautious Positioning: Traders are adopting a patient approach, waiting for confirmation of market strength or weakness before making high-risk entries, as the current setup suggests a possible liquidity sweep.