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As the crypto market kicks off March on a positive note, veteran trader Peter Brandt shared his perspective on Ethereum's price action. In a tweet, Brandt stated that the "Ethereum (ETH) chart can now be viewed as a potential 11-month rectangle."
The rectangle chart pattern, noted by Brandt, occurs when the price is bounded by parallel support and resistance levels. A rectangle exhibits a period of consolidation or indecision between buyers and sellers, with neither yet dominating. The price will repeatedly "test" the support and resistance levels before breaking out.
Brandt accompanied his tweet with an ETHUSD monthly chart that highlighted a potential rectangle pattern formation with parallel support and resistance levels; Brandt indicated support at $2,150 and a breakout target of $6,004.
Tomiwabold OlajideRectangle patterns frequently act as accumulation zones before a large breakout. In this case, a break above parallel resistance levels could trigger a surge in buying pressure, potentially sending ETH to new highs of $6,004, as indicated by Brandt. However, if ETH fails to break out, it may continue trading sideways within the rectangle or retest lower support levels.
Ethereum price action
At the time of writing, ETH was up 4.74% in the last 24 hours to $2,354. The announcement that Bitcoin and Ether would be included in a crypto strategic reserve helped ETH slightly rebound from last month's sharp declines.
Gamza KhanzadaevAccording to a recent Glassnode analysis, the largest accumulation zone for Ethereum is at $1,890, where 1.82 million ETH are held. This supply concentration began in August 2023, suggesting participation from cyclical investors with strong conviction. The level of $2,100 is the last notable accumulation level before the $1890 zone, but it holds only about 500,000 ETH — far less than the major support level below it.
A two-year view of the ETH Cost Basis Distribution (CBD) indicated that ETH investors accumulating in August 2023 remained engaged. Some increased their cost basis in November 2024, buying into last year’s rally while avoiding major distribution at range highs.
A six-month view shows strong engagement from investors with a cost basis much higher, particularly around $3,500.
Dan Burgin
Vladislav Sopov