Ethereum (CRYPTO: ETH) is down about 45% from its May 12 all-time high of $4,380 amid an overall cryptocurrency rout.

Some coins, such as Shiba Inu (CRYPTO: SHIB), have made gains this week, but most cryptos are down substantially from their May highs.

Although frustrating for Ethereum enthusiasts, especially those who blame Tesla Inc (NASDAQ:TSLA) CEO Elon Musk for manipulating the crypto space via Twitter, Ethereum is still trading up about 236% since the start of 2021 and likely needed a period of consolidation.

See Also: How to Buy Ethereum

The Ethereum Chart: In its consolidation, Ethereum has settled into a triangle pattern on the daily chart, closing within the triangle 26 out of the last 27 days. On Wednesday afternoon, Ethereum briefly dropped below the bottom ascending trendline of the triangle, but the dip was bought and the crypto popped back up into the pattern.

Volume, which indicates the amount of both buyers and sellers, has been declining in Ethereum since its 27.65% fall on May 19.

The declining volume has caused the crypto to settle into the triangle in a tightening range and also indicates there is indecision in Ethereum’s future direction.

There is a good chance that before Ethereum reaches the apex of the triangle on June 21, either big bullish volume or big bearish volume will come to enter and break it up or down.

Ethereum is trading below both the eight-day and 21-day exponential moving averages (EMAs) and the eight-day EMA is trending below the 21-day EMA, both of which are bearish signs.

Ethereum is trading over the 200-day simple moving average, which indicates its overall sentiment remains bullish.

eth_june_16_2.png

See Also: Bitcoin Bull Michael Saylor On Ethereum, Altcoins Says 'There Is Place For Everybody'

Bulls want to see Ethereum continue to close within the triangle and for big bullish volume to enter and break it up above the upper descending trendline of the pattern. This would help Ethereum regain the support of the eight-day and 21-day EMAs. If the crypto can make a bullish break it has room to move up toward the $2,770 area.

Bears want to see big bearish volume come in and push Ethereum below the triangle. If Ethereum closes a day below the triangle, there may be a better chance it will drop further toward the $2,258 level.

ETH Price Action: Ethereum was trading down 5.30% at $2,414.11 Wednesday afternoon at publication.