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Ethereum (ETH) has been consolidating since November 12 when it hit a local high of $4,446. Despite Bitcoin’s impressive rally that caught the market’s attention, Ethereum has struggled to maintain its bullish momentum and regain its yearly highs. The price action reflects a period of indecision, as ETH faces difficulty breaking important resistance levels that could reignite bullish sentiment.
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Although Ethereum lags behind Bitcoin in terms of performance, analysts remain optimistic about its breakout potential. Notably, Carl Runefelt, a prominent crypto analyst, recently shared technical analysis suggesting that ETH is on the verge of a major move.
According to Runefelt, Ethereum must surpass a key resistance level to trigger a breakout and join the broader market uptrend.
As the second largest cryptocurrency by market capitalization, Ethereum’s next steps will be crucial for traders and investors closely monitoring the market. A break above resistance could signal the start of a new bullish phase, while continued consolidation could test the patience of market participants. With technical signals aligning and speculation building, Ethereum’s price action in the coming days will likely set the tone for its performance in the weeks to come.
Ethereum prepares to rise
Ethereum has been disappointing in its price action since March, struggling to keep pace with Bitcoin’s performance. Despite some notable gains, ETH has yet to achieve the breakthrough that investors are eagerly awaiting.
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The prolonged consolidation has frustrated some traders, but optimistic sentiment remains among those who believe Ethereum is poised for a significant rally once it hits key supply levels.
Leading crypto analyst Carl Runefelt recently shared his technical analysis on X, highlighting Ethereum’s current position in a bull flag pattern. According to Runefelt, ETH has been attempting to break out of this formation over the past two weeks, facing strong resistance in critical supply zones. However, he remains confident that it could quickly reach $4,150 once Ethereum breaks this level.
Such a move would mark a substantial percentage increase from current prices, triggering a wave of investor enthusiasm. Fear of missing out (FOMO) could generate additional buying momentum, creating a self-reinforcing cycle of price appreciation. If ETH follows this trajectory, it would confirm the breakout of the bull flag and signal Ethereum’s return to a dominant position in the crypto market.
ETH Price Action: Technical Details
Ethereum is trading at $3,120 after several days of sideways consolidation below its recent local high of $3,446. Despite the pause in bullish momentum, ETH showed strength by surpassing the critical 200-day moving average (MA), currently at $2,957, and maintaining its position above this key technical indicator.
The 200-day MA is often a pivotal line between uptrends and downtrends. Ethereum’s ability to stay above demonstrates strong support from buyers and growing confidence in the market. If ETH continues to hold this level, it could pave the way for a bullish surge, with the first target being the local high at $3,446.
Beyond that, a break above this resistance level could see ETH aim for yearly highs near $4,000, reigniting enthusiasm among traders and investors. Such a move would likely confirm Ethereum’s return to a sustained uptrend, aligning it more closely with Bitcoin’s recent bullish performance.
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However, losing the 200-day MA as support could introduce pullback risks, which could prompt ETH to retest lower levels. Ethereum price action remains strong as the market eagerly awaits the next big move.
Featured image of Dall-E, chart by TradingView
