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Ethereum (ETH) has underperformed in recent weeks as price action disappointed investors following last week’s flash crash and increased volatility. Despite initial hopes of recovery, ETH has struggled to regain momentum, trending downward since mid-December. This lack of upward movement has left investors hungry for a surge that could pull Ethereum out of its current slump.
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To add to the anticipation, analyst Carl Runefelt recently shared technical analysis suggesting that Ethereum could be preparing for its next big move. According to Runefelt, ETH forms a symmetrical 4-hour triangle, a pattern often associated with periods of consolidation before a breakout. Although the direction of the breakout remains uncertain, the formation indicates that a decisive move could be on the horizon.
As Ethereum approaches key levels, market participants are closely monitoring the resolution of the triangle. A breakout higher could reignite bullish sentiment, while a breakout could signal continued struggles for the largest altcoin. As the broader crypto market shows signs of recovery, the next few days will be crucial for Ethereum to prove its resilience and reestablish its leading position in the field. All eyes are now on the next step for ETH.
Ethereum consolidates ahead of a move
Ethereum is currently in a short-term consolidation phase, trading between key demand and supply levels as the market grapples with uncertainty. Even though analysts are expecting a major move, the direction remains unclear due to increased volatility and mixed sentiment among investors. ETH price action reflects a market in wait-and-see mode, with traders closely monitoring key technical levels for signs of a breakout.
Analyst Carl Runefelt recently shared his technical analysis on X, highlighting Ethereum’s preparation for its next big move. According to Runefelt, ETH forms a symmetrical 4-hour triangle, a trend that often precedes a decisive breakout. He noted that this pattern comes with both bullish and bearish scenarios, depending on the direction of the breakout.
If ETH breaks above the triangle, the bullish target is set around $3,900, signaling the potential start of a new bullish phase. Conversely, a break below the triangle would indicate a downside target near $2,720, indicating further decline. Runefelt stressed the importance of monitoring this pattern as it evolves, as the outcome could set the tone for Ethereum’s next trend.
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As market sentiment remains uncertain and volatility remains high, Ethereum’s symmetrical triangle provides a clear framework for traders. Whether the breakout is up or down, it will likely mark the start of a significant move, shaping Ethereum’s trajectory in the weeks to come. For now, investors are closely watching this critical technical formation.
Volatility drives the market
Ethereum is currently trading at $3,317, navigating a market dominated by massive volatility. This increased price action has become the main driving force behind speculation and uncertainty among traders. As Ethereum struggles to stabilize, staying above critical support levels is essential to maintain a bullish structure and avoid further declines.
The $3,300 level has become a key support area that bulls must defend to maintain momentum. If ETH manages to maintain this mark and break above the $3,550 resistance strongly, it could solidify the bullish outlook and potentially lead to a stronger recovery. A crossing of this level would also signal a renewed investor confidence, opening the door to a more sustained upward trend.
However, market uncertainty also carries the risk of a deeper correction. Loss of the psychological $3,000 level could trigger additional selling pressure, leading to a dramatic decline and testing lower support zones. Such a move would test ETH’s resilience and likely prolong its consolidation phase.
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As the market awaits clearer signals, Ethereum’s ability to sustain above key levels will be closely monitored. The next few days will be crucial in determining whether ETH can maintain its structure or face more volatility and downward pressure.
Featured image of Dall-E, chart by TradingView.
