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Ethereum (ETH) has underperformed in recent weeks, with its price action leaving investors disappointed following last week’s flash crash and heightened volatility. Despite initial hopes for a recovery, ETH has struggled to regain momentum, trending lower since mid-December. This lack of bullish movement has left investors eager for a rally that could lift Ethereum out of the current crisis.
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Adding to the anticipation, leading analyst Carl Runefelt recently shared a technical analysis that suggests Ethereum may be preparing for its next significant move. According to Runefelt, ETH is forming a symmetrical 4-hour triangle, a pattern often associated with periods of consolidation before a breakout. While the direction of the breakout remains uncertain, the pattern indicates that a decisive move could be on the horizon.
As Ethereum hovers near key levels, market participants are closely monitoring the resolution of the triangle. A break to the upside could reignite bullish sentiment, while a collapse could signal continued trouble for the largest altcoin. With the broader cryptocurrency market showing signs of recovery, the next few days will be crucial for Ethereum to demonstrate its resilience and re-establish its leading position in the industry. All eyes are now on ETH’s next move.
Ethereum consolidates before the move
Ethereum is currently in a short-term consolidation phase, trading between key supply and demand levels as the market grapples with uncertainty. While analysts are predicting 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 breakout signals.
Leading analyst Carl Runefelt recently shared his technical analysis on X, highlighting Ethereum’s preparation for its next significant move. According to Runefelt, ETH is forming a symmetrical 4-hour triangle, a pattern that often precedes a decisive breakout. He noted that this setup involves both bullish and bearish scenarios, depending on the direction of the breakout.
If ETH were to break out of the triangle, the bullish target will be 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 downside. Runefelt stressed the importance of monitoring this pattern as it develops, as the outcome could set the tone for Ethereum’s next trend.
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With market sentiment still uncertain and volatility still high, Ethereum’s symmetrical triangle offers a clear picture 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 keeping an eye on 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 primary force driving speculation and uncertainty among traders. As Ethereum struggles to stabilize, staying above critical support levels is essential to maintaining a bullish structure and avoiding further declines.
The $3,300 level has emerged as a key support area that the bulls need to defend to sustain the momentum. If ETH can hold this level and forcefully clear the $3,550 resistance, it could solidify a bullish outlook and potentially lead to a stronger recovery. Breaking this level would also signal renewed confidence among investors, opening the door for a more sustained uptrend.
However, market uncertainty also brings the risk of a deeper correction. Loss of the psychological $3,000 level could trigger further selling pressure, leading to a dramatic decline and testing lower support zones. Such a move would test ETH’s resilience and likely extend its consolidation phase.
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While the market awaits clearer signals, Ethereum’s ability to sustain above key levels will be monitored closely. The next few days will be critical in determining whether ETH can maintain its structure or face further volatility and downward pressure.
Featured image of Dall-E, TradingView chart.