Ethereum Will Drop Before The Next Leg Up – Analyst Sets Target
Ethereum is trading below last year’s highs as investors eagerly await a breakout to confirm the expected start of altcoin season. Although ETH’s price action has been subdued, traders remain optimistic about its potential for exceptional outperformance in 2025, given its historical cycles and the market’s overall bullish sentiment.
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Top analyst Carl Runefelt recently shared a technical analysis of X, highlighting that ETH is currently trading within an ascending channel. This pattern suggests that a short-term pullback is likely before Ethereum gains its next upward momentum. Runefeldt’s analysis is consistent 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 crucial for Ethereum It is working hard to recapture the highs and establish dominance in the cryptocurrency market. A breakout could mark the start of a broader altcoin rally, cementing ETH’s status as the leader of altcoin season. Ahead of this, investors and traders are keeping a close eye on Ethereum’s price action and technical indicators, bracing for a pivotal year for the second-largest cryptocurrency.
Ethereum’s Road to 2025: Optimism Amid Consolidation
Ethereum had a lackluster 2024, lagging behind Bitcoin and failing to ignite the expected early altcoin season. However, many analysts predict a dramatic shift this year. Historically, the years following halvings have been exceptional for altcoins, and Ethereum appears poised to benefit from this trend. Expectations are growing that ETH will “melt” in 2025, bringing significant gains.
Top analyst Carl Runefelt recently Shared technical analysis of Xwhich details the price structure of Ethereum. According to Runefelt, ETH is currently trading within an ascending channel after reaching its previous target.
While this pattern typically signals a bullish continuation, there is also the risk of a temporary breakdown. Runefelt said that if Ethereum fails to hold its current position, it could retest the $3,500 level before regaining upward momentum. He believes that such a pullback could set the stage for Ethereum’s next big rally.
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A return to last year’s highs will be crucial for Ethereum as it will solidify its position as the market leader and instill confidence among traders and investors. The broader crypto market is preparing for what many predict will be the 2025 market, with Ethereum at the forefront of a potential altcoin recovery. Whether ETH breaks out or pulls back briefly, this year could determine its trajectory for the next few years.
Technical Analysis: Price Consolidation
Ethereum is currently consolidating near $3,650 after a clear break above the 4-hour 200 moving average at $3,629. This breakout marks a critical moment for ETH as it displays new bullish momentum in the short term. Holding the 4-hour 200 moving average as support could signal strength in price, setting the stage for Ethereum to push higher in the coming days.
However, the market remains cautious. If Ethereum fails to maintain this key metric, the price could slip to lower demand levels. A retest of the $3,500 mark will become a likely scenario. This level has been an important area of interest for traders and could form the basis for another potential rally.
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The next few trading days will be crucial in determining whether Ethereum can build on its recent breakout or whether a pullback will occur. A sustained move above $3,629 would indicate strong buyer interest and pave the way for a push towards higher resistance. Conversely, a loss of this flag could lead to consolidation or further declines, testing the resilience of Ethereum’s bullish structure.
Featured image from Dall-E, chart from TradingView
