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Ethereum began the year as it ended the previous one: under a bearish cloud. The altcoin leader has had a rocky start, with its price falling more than 16% since January 6. Price weakness continues to dominate as ETH struggles to find solid support, leaving investors cautious about what lies ahead.
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Amid market uncertainty, analyst Carl Runefelt shared technical analysis on X, offering insight into Ethereum’s potential next move. Runefelt points out that ETH forms a symmetrical triangle pattern over a one-hour time frame, a pattern that typically precedes a significant price movement. According to his analysis, this formation signals a period of consolidation that could lead to either a bullish breakout or a bearish breakout.
A breakout could bring much-needed optimism to Ethereum investors, potentially reversing the downtrend and pushing the price towards higher levels. On the other hand, an outage could extend ETH’s current losses, raising concerns about deeper corrections in the near term. As the market awaits clarity, all eyes are on Ethereum’s next move, which could set the tone for its performance in the weeks to come.
Fight against Ethereum: what’s next for the Altcoin leader?
Ethereum investors face tough times, and price action continues to disappoint. After briefly holding key demand levels, many expected a change in market sentiment. However, ETH has now fallen to its lowest price since late December, leaving investors worried about its next move.
Analyst Carl Runefelt recently shared technical analysis on X, shedding light on Ethereum’s current situation. Runefelt revealed that ETH forms a symmetrical triangular pattern over a one-hour time frame, a structure that suggests a significant price movement is imminent. The model highlights critical levels on both sides of the market, providing a roadmap for potential outcomes.
If Ethereum fails to sustain above the $3,000 level, a deeper correction is likely, which could send the price significantly lower. Conversely, regaining the $3,500 level would signal strength, paving the way for a massive breakout. Such a move would not only restore investor confidence but also attract new capital into the market.
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The market as a whole is at a crossroads, with Bitcoin holding above key support levels while altcoins, including Ethereum, continue to see selling pressure. As traders closely monitor ETH’s next move, its performance in the coming days could set the tone for the broader altcoin market.
ETH Tests Crucial Support Levels Amid Downtrend
Ethereum is trading at $3,113 after a 6% decline over the past few hours, signaling continued bearish pressure in the market. Price is now testing the 200 daily exponential moving average (EMA) at this level, a critical technical indicator that could determine the direction of the next move. Holding this EMA as support could trigger a bullish recovery, giving ETH the momentum needed to regain higher levels in the coming sessions.
However, the market remains nervous and the key level to watch for support is the untested $3,000 mark. This psychological and technical level has not been revisited since late November, making it an important area of interest for both bulls and bears. A decline to this level could spark strong buying interest, potentially paving the way for a rebound.
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On the other hand, if ETH fails to hold the daily 200 EMA or loses the $3,000 level, a deeper correction could ensue, potentially driving the price to new lows for 2025 With bearish market sentiment and key supports tested, Ethereum’s price action in the coming days will be crucial in shaping its short-term trend.
Featured image of Dall-E, chart by TradingView
