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ethereum is trading below last year's highs as investors eagerly await a breakout to confirm the start of the long-awaited Altseason. While eth's price action has been subdued, traders remain optimistic about its potential to perform exceptionally well in 2025, given its historical cycles and overall bullish market sentiment.
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Prominent analyst Carl Runefelt recently shared a technical analysis on x, highlighting that eth is currently trading within an ascending channel. This pattern suggests the possibility of a short-term pullback before ethereum gains momentum for its next leg up. Runefelt's analysis aligns with the cautious optimism prevailing in the market as traders monitor key support and resistance levels for signs of a breakout.
The next few weeks are critical for ethereum as it struggles to reclaim its highs and assert its dominance in the cryptocurrency market. A breakout could signal the start of a broader altcoin rally, solidifying eth's position as a leader in the Altseason narrative. Until then, investors and traders are closely watching ethereum's price movements and technical indicators, preparing for what could be a pivotal year for the second-largest cryptocurrency.
ethereum's path to 2025: optimism amid consolidation
ethereum endured a disappointing 2024, underperforming bitcoin and failing to kick off the expected early altseason. However, many analysts predict a radical change this year. The post-halving years have historically been exceptional for altcoins, and ethereum appears poised to benefit from this trend. There are increasing expectations that eth will “melt faces” in 2025, generating significant gains.
Lead analyst Carl Runefelt recently <a target="_blank" href="https://x.com/TheMoonCarl/status/1876572637331091533″ target=”_blank” rel=”nofollow”>shared a technical analysis on xwhich offers a detailed look at the price structure of ethereum. According to Runefelt, eth is currently trading within an ascending channel after reaching its previous target.
While this pattern often indicates a bullish continuation, there is also a risk of a temporary breakout. Runefelt suggests that if ethereum fails to maintain its current position, it could retest the $3,500 level before regaining bullish momentum. Such a pullback, he claims, could set the stage for ethereum's next big rally.
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Reclaiming last year's highs will be critical for ethereum as it would solidify its position as a market leader and instill confidence among traders and investors. The broader crypto market is gearing up for what many expect to be a massive 2025, with ethereum positioned at the forefront of a potential altcoin resurgence. Whether eth explodes or briefly pulls back, this year could define its trajectory for years to come.
Technical analysis: price consolidation
ethereum is currently consolidating around the $3,650 level after a clean break above the 4-hour 200 moving average at $3,629. This breakout marked a critical moment for eth as it demonstrated renewed bullish momentum in the near term. Holding the 200 4-hour moving average as support could indicate price strength, offering a foundation for ethereum to rise in the coming days.
However, the market remains cautious. If ethereum fails to maintain this key indicator, the price could fall to lower demand levels. A retest of the $3,500 mark would then become a likely scenario. This level has been a major area of interest for traders and could be the basis for another possible rally.
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The upcoming trading sessions will be crucial in determining whether ethereum can take advantage of its recent breakout or if a pullback is looming. A sustained hold above the $3,629 level would indicate strong buyer interest and pave the way for a push towards higher resistance levels. On the contrary, missing this mark can lead to consolidation or a further decline, testing the resilience of ethereum's bullish structure.
Featured image of Dall-E, TradingView chart
