Ethereum Likely to Extend Prolonged Sideways Trend, Expert Says It Reflects Priced-In Economic Conditions

▲ Ethereum (ETH)

Geopolitical tensions and macroeconomic uncertainty have already been priced into Ethereum (ETH). As a result, analysts suggest that the cryptocurrency is likely to move sideways within a consolidation range for the time being, enduring a period of patience to rebuild investor confidence.

According to Cointelegraph on Feb. 26 (local time), Pav Hundal, senior analyst at cryptocurrency exchange Swyftx, said Ethereum’s price has largely priced in short-term macro risks and industry-related positives, and is therefore expected to remain in a sideways phase for now. “Much of the short-term uncertainty has already been reflected in Ethereum’s price,” Hundal said. “It would not be surprising at all if Ethereum remains very quiet over the next few weeks.” He noted that escalating geopolitical tensions surrounding Iran and developments related to the U.S. crypto market structure bill (CLARITY) have already been absorbed by the market.

Ethereum is currently facing a double burden, remaining in a recovery phase after losing investor trust following the massive liquidation event in October. “Ethereum is experiencing a double hit in the short term,” Hundal explained. “The chain of liquidations last October wiped out $19 billion from the market, and consumer sentiment fell to levels not seen since 2022.” The scars left by the large-scale liquidations run deep, meaning renewed investor conviction is necessary for a meaningful price rebound.

The Crypto Fear & Greed Index, which measures overall sentiment in the digital asset market, currently stands at 13, indicating extreme fear. “To me, consumer sentiment is a very big issue that nobody is talking about,” Hundal said, adding that while many investors are focused solely on the source of the next liquidity wave, a genuine recovery in sentiment must come first. The pervasive caution among retail investors is effectively capping the market’s upside.

In contrast to the pessimism among retail investors, large institutions are aggressively increasing their Ethereum holdings, betting on its long-term value. BitMine Immersion Technologies, the world’s largest corporate holder of Ethereum treasury assets, recently purchased an additional 45,759 ETH, bringing its total holdings to 4,371,497 ETH. This represents approximately 3.62% of Ethereum’s total circulating supply, with strong institutional accumulation serving as a key support for the market’s downside.

The Ethereum market is currently undergoing a phase of energy consolidation amid the contrasting forces of priced-in macro headwinds and institutional accumulation. Hundal projected that a full-fledged rebound rally will only be possible once market volatility normalizes and investor confidence is rebuilt. From a technical perspective, the liquidity-dense zone between $2,200 and $2,500 is emerging as a key short-term recovery target. For now, price movements are expected to remain limited as the market waits for tangible signals of demand recovery.

Disclaimer: This article is for investment reference only and does not take responsibility for any investment losses resulting from its use. The content should be interpreted solely for informational purposes.