Crypto Market Neutral Amid Geopolitical Tensions Bitcoin Stable Ethereum Consolidates

The cryptocurrency market has recently entered a phase of neutral sentiment, as indicated by the Crypto Fear & Greed Index standing at 48. This neutral stance reflects a growing caution among investors, who are now more apprehensive about the market's direction amid geopolitical tensions. The market's indecision is further highlighted by the recent expiration of over $4.1 billion in Bitcoin and Ethereum options, which could signal potential short-term volatility. However, the market has not experienced a major sell-off despite these geopolitical developments, suggesting a level of resilience among major cryptocurrencies.

Bitcoin’s sideways trading and mixed altcoin performance reflect this neutral sentiment. The pioneer cryptocurrency has been trading in a range-bound sideways direction between a lower limit and an upper limit, which coincides with its all-time high. This trend is mirrored by the top 100 altcoins, with the upper half delivering impressive gains and the lower half experiencing notable losses. This neutralizing effect emphasizes the prevailing crypto market trend, leaving users uncertain about what could happen next.

Historically, such neutral consolidation periods often precede a major directional price move. A neutral sentiment in the cryptocurrency market occurs ahead of a significant move. Investors’ worries revolve around knowing the exact direction the market could go after such a relatively dormant period. Although technical analysts use chart formations and historical patterns to predict market directions, external events like the ongoing regional and global geopolitical tensions are critical during such market situations.

Many analysts have acknowledged Bitcoin’s stability in the face of heightened global tension. They consider the digital token to have matured and gained recognition as an established asset and a haven for investors. That sentiment could become crucial during periods of uncertainty like the current situation, where most traders are seeking direction.

Ethereum's price has been trading in a tight range around $2,500, with key support at $2,420 and immediate resistance at $2,554. The Relative Strength Index (RSI) is currently at 54.54, just above the neutral 50 mark, indicating a cooling-off period or consolidation before the next big move. If the RSI climbs above 60 and the price breaks $2,600 with volume, it could trigger a short-term rally toward $2,800. Fibonacci projections suggest that a move toward $3,200–$3,600 is in sight, with the 1.618 extension level at $3,600 being a strong long-term target. Ethereum's price action is forming a bullish consolidation pattern, with tight candles following a strong impulse move, which often acts as a base for the next leg up. The current sideways movement mirrors accumulation phases seen historically before breakouts. Volume has also remained low during the consolidation, another signal of a pending volatility spike.

If Ethereum's price replicates its early May rally from $2,000 to nearly $3,000, it could surge to $3,750, aligning well with the Fibonacci 1.618 extension zone. Unless macroeconomic or crypto-specific sentiment drastically shifts, Ethereum's price seems poised to retest $2,950 and then potentially surge toward $3,200 and $3,600. The RSI, tight price action, and previous rally structure support this thesis. However, failure to hold $2,420 would invalidate the bullish setup and may send Ethereum back to $2,200 or lower. Traders should closely watch the $2,550–$2,600 range, as a clean break above could offer a high-probability long setup, especially if confirmed with RSI momentum and volume.