Ethereum has started the year much like the last one – under a bearish cloud. The altcoin leader has had a challenging start, with its price falling more than 16% since January 6th. Weak price action continues to prevail as ETH struggles to find solid support, leaving investors wary of what lies ahead.
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Amid the market uncertainty, leading analyst Carl Runefelt has shared a technical analysis of X, giving us an insight into Ethereum's possible next move. Runefelt points out that ETH is forming a symmetrical triangle pattern on the 1-hour timeframe – a situation that usually precedes a big price move. According to his analysis, this formation indicates a period of consolidation that may lead to a bearish breakout or breakdown.
A breakout could provide great hope for Ethereum investors, which could be returning the bearish trend and pushing the price to higher levels. On the other hand, a breakdown could extend ETH's current losses, raising concerns about deeper corrections in the near term. As the market waits for clarity, all eyes are on Ethereum's next move, which could set the tone for its performance in the coming weeks.
Ethereum Struggle: What's Next for the Altcoin Leader?
Ethereum investors are facing challenging times, with price action continuing to disappoint. After keeping key demand levels short, many expected a shift in market sentiment. However, ETH has now fallen to its lowest price since late December, leaving investors worried about its next move.
Principal analyst Carl Runefelt recently shared a technical analysis of Xshedding light on the current situation of Ethereum. Runefelt revealed that ETH is forming a symmetrical triangle pattern on the 1-hour timeframe – a structure that indicates a significant price move is coming. The pattern highlights critical levels on both sides of the market, providing a roadmap for potential outcomes.
If Ethereum does not hold above the $3,000 level, a deeper correction is likely, which could push the price significantly lower. On the other hand, regaining the $3,500 level would show strength, setting the stage for a major breakout. Such a move would not only restore investor confidence but also attract new capital to 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 experience 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 Decline
Ethereum is trading at $3,113 after a 6% decline in the past few hours, indicating continued bearish pressure in the market. The price is now testing the 200 daily 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 it needs to regain higher levels in the coming sessions.
However, the market is still on the edge, and the main level to watch for support is the unconfirmed $3,000 mark. This psychological and technical level has not been revisited since late November, making it an interesting area for bulls and bears. A fall to this level could attract significant buying interest, possibly setting the stage for a rebound.
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On the flip side, if ETH fails to hold the 200 daily EMA or misses the $3,000 level, a deeper correction could occur, which could propel the price to new 2025 levels. the next few days will be very important in shaping his short term movement.
Featured image from Dall-E, chart from TradingView
