Ethereum is trading below last year's highs as investors eagerly await a breakout to confirm the start of the much-anticipated Altseason. While ETH's price action has been muted, traders remain optimistic about its ability to outperform in 2025, given its historic cycles and the overall bullish sentiment of the market.
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Lead analyst Carl Runefelt recently shared a technical analysis of X, indicating that ETH is currently trading within an ascending channel. This pattern suggests that there could be a short-term pullback before Ethereum gains momentum for the next move up. Runefelt's analysis aligns with the cautious optimism prevalent in the market as traders monitor key support and resistance levels for signs of a breakout.
The coming weeks are critical for Ethereum while he fights to regain the highest levels and to assert leadership in the crypto market. A breakout could signal the start of a broader altcoin rally, cementing ETH's position as a leader in Altseason's narrative. Until then, investors and traders are closely monitoring Ethereum price movements and technical indicators, preparing for what could be an important year for the second largest cryptocurrency.
Ethereum's path into 2025: hope amid consolidation
Ethereum suffered an underperformance in 2024, underperforming Bitcoin and failing to give up the expected early Altseason. However, many analysts are predicting a dramatic turnaround this year. Historically, years after a half have been special for altcoins, and Ethereum seems to be in the lead to benefit from this trend. ETH is expected to “melt faces” in 2025, delivering huge gains.
Senior analyst Carl Runefelt recently share technical analysis of Xtakes a close look at Ethereum's price structure. According to Runefelt, ETH is currently trading within an ascending channel after hitting the previous target.
Although this pattern often indicates a supportive continuation, there is also the risk of a temporary breakdown. Runefelt suggests that if Ethereum does not maintain its current position, it could retest the $3,500 level before regaining an upward trend. Such a move, he argues, could set the stage for Ethereum's next major rally.
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It will be essential for Ethereum to regain the high levels of last year, as it would consolidate its position as a market leader and give confidence among traders and investors. The broader crypto market is gearing up for what many expect to be a big 2025, with Ethereum positioned at the forefront of a possible altcoin revival. Whether ETH breaks out or pulls back briefly, this year could define its path for years to come.
Technical Analysis: Price Consolidation
Ethereum is currently consolidating around the $3,650 level after a clean break above the 4-hourly 200 moving average at $3,629. This breakout marked a critical moment for ETH, as it indicated a new bullish trend in the short term. Holding the 4-hour moving average 200 as support could indicate price strength, offering a basis to push Ethereum higher in the coming days.
However, the market remains cautious. If Ethereum does not hold this key indicator, the price could slide to lower demand levels. A retest of the $3,500 mark would then be a likely scenario. This level has been an interesting area for traders and could be the basis for another reversal.
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The next few trading sessions will be crucial in determining if Ethereum can build on the recent breakout or if there is a pullback. A sustained hold above the $3,629 level would signal strong buyer interest and clear the way for a push towards higher resistance levels. On the other hand, the loss of this signal could lead to consolidation or further downsides, testing the resilience of Ethereum's bullish structure.
Featured image from Dall-E, chart from TradingView
