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ethereum started the year much like it ended the previous one: under a bearish cloud. The altcoin leader has faced a challenging start, with its price falling more than 16% since January 6. Weak price action continues to dominate as eth struggles to find strong support, leaving investors cautious about what lies ahead.
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Amid market uncertainty, top analyst Carl Runefelt has shared a technical analysis on x, offering insight into ethereum's possible next move. Runefelt highlights that eth is forming a symmetrical triangle pattern on the 1-hour period, a setup that typically precedes a significant price movement. According to their analysis, this formation signals a period of consolidation that could lead to a bullish or bearish breakout.
A breakout could provide much-needed optimism to ethereum investors, potentially reversing the downtrend and pushing the price towards higher levels. On the other hand, a breakout could extend eth's current losses, raising concerns about deeper corrections in the near term. While 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 Fight: 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 anxious about its next move.
The best analyst Carl Runefelt<a target="_blank" href="https://x.com/TheMoonCarl/status/1878563673876181112″ target=”_blank” rel=”nofollow”> recently shared a technical analysis on xshedding light on the current situation of ethereum. Runefelt revealed that eth is forming a symmetrical triangle pattern on the 1-hour period, a structure that suggests a significant price move is imminent. The pattern highlights critical levels on both sides of the market, providing a roadmap for possible outcomes.
If ethereum fails to hold above the $3,000 level, a deeper correction is likely, which could cause the price to drop significantly. Conversely, reclaiming the $3,500 level would be a sign of strength, setting the stage for a massive 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: bitcoin remains 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 Downtrend
ethereum is trading at $3,113 after a 6% drop in the past few hours, indicating continued bearish pressure on the market. The 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 spark a bullish recovery, giving eth the momentum needed to reclaim 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 revised since late November, making it an important area of interest for both bulls and bears. A drop to this level could attract strong buying interest, which could set the stage for a rally.
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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, which could push the price to new lows by 2025. With market sentiment turning bearish and With key supports being tested, ethereum's price action in the coming days will be critical in shaping its near-term trend.
Featured image of Dall-E, TradingView chart
