Ethereum is consolidating around its yearly highs, having failed to break the $2,000 resistance level. Since May 2022, it has been trading within a range of $1,000. Bulls have maintained an upside bias, but have not been able to establish a meaningful break higher.

The cryptocurrency market is still consolidating as there is only one trading day left in July. Cryptocurrency investors have become more enthusiastic following the rally in 2023, but without further follow-through, that sentiment may soon dissipate.

The chart below shows the $1,000 range ETH/USD has been trading in since May 2022. The higher lows formed against horizontal resistance suggest that the market is building energy to break higher. However, the bullish bias could collapse if the higher lows series is broken. If that happens, focus will shift back to the $1,000 support level, which, if broken, could trigger a bearish head & shoulders pattern with a measured move lower than $1,000.

Ethereum chart by TradingView