This article is also available in Spanish.
ethereum (eth) has underperformed in recent weeks, and its price action left investors disappointed following last week's sudden drop and increased volatility. Despite initial hopes of 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 its current decline.
Related reading
Adding to the anticipation, top analyst Carl Runefelt recently shared 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 formation indicates that a decisive move could be on the horizon.
As ethereum approaches key levels, market participants are closely monitoring the resolution of the triangle. An upside breakout could reignite bullish sentiment, while a breakout may signal continued struggles for the largest altcoin. With the broader crypto market showing signs of recovery, the next few days will be crucial for ethereum to prove its resilience and reestablish its position as a leader in the space. All eyes are now on eth's next move.
ethereum consolidates ahead of a 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 anticipate 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 signs of a breakout.
Lead analyst Carl Runefelt recently <a target="_blank" href="https://x.com/TheMoonCarl/status/1881986713280471068″ target=”_blank” rel=”nofollow”>shared his technical analysis on xhighlighting ethereum's readiness 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 comes with both bullish and bearish scenarios, depending on the direction of the breakout.
If eth breaks the triangle, the bullish target is set around $3,900, indicating the possible start of a new bullish phase. Conversely, a break below the triangle would point to a bearish target near $2,720, indicating further decline. Runefelt emphasized the importance of monitoring this pattern as it develops, as the result could set the tone for ethereum's next trend.
Related reading
With market sentiment still uncertain and volatility still high, ethereum's symmetrical triangle offers a clear framework for traders. Whether the breakout is up or down, it will likely mark the beginning of a significant move, which will shape ethereum's trajectory in the coming weeks. For now, investors are closely monitoring this critical technical formation.
Volatility drives the market
ethereum is currently trading at $3,317, navigating a market dominated by massive volatility. This intensification of 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 maintain a bullish structure and avoid further declines.
The $3,300 level has become a key support area that bulls must defend to maintain momentum. If eth can hold this mark and overcome the $3,550 resistance strongly, it could solidify a bullish outlook and potentially lead to a stronger recovery. Breaking above this level would also indicate renewed confidence among investors, opening the door to a more sustained uptrend.
However, market uncertainty also carries the risk of a deeper correction. Losing the psychological level of $3,000 could trigger additional selling pressure, leading to a dramatic decline and testing lower support zones. Such a move would challenge eth's resistance and likely extend its consolidation phase.
Related reading
As the market awaits clearer signals, ethereum's ability to stay above key levels will be closely watched. The next few days are critical in determining whether eth can maintain its structure or face increased volatility and downward pressure.
Featured image of Dall-E, TradingView chart.
