Bollinger Bands have narrowed to the extreme, and the bulls and bears are about to determine the outcome.

As a trader who lives by watching the charts, I’ve seen this kind of situation many times. Looking at ETH’s 1-hour candlestick chart now, that increasingly narrow triangle convergence is exactly the precursor I’ve been waiting for to break out.

While many retail traders are still regretting not buying at $3000, I’ve already seen clear signs of bullish accumulation on the hourly level. Market liquidity is drying up rapidly, and the Bollinger Band width has compressed to the limit—this is the old saying, the calm before the storm.

**Technical Analysis Perspective**

The chart now looks almost textbook. ETH’s price is converging at the end of a symmetrical triangle, with decreasing volatility, indicating that the bulls and bears are temporarily evenly matched. But once this balance is broken, it will unleash a powerful directional move.

Several key indicators are already quite clear:

The distance between the upper and lower Bollinger Bands is extremely tight. After such a long period of narrowing, it’s usually followed by a sharp expansion—that is, the price will either surge or plunge.

More interestingly, although the price is consolidating sideways, there are signals in the details. Recently, the bodies of the last few candlesticks have been shrinking on the bearish side, while bullish candles are starting to show increased volume.

The MACD indicator is still oscillating around the zero line, but the green histogram bars are continuously shrinking, and in some places, they are even turning red. This usually indicates that the bearish momentum is waning. When the MACD finally forms a golden cross above the zero line, the market often experiences a significant rally.