Ethereum Is Forming A 1-Hour Symmetrical Triangle – Bullish Breakout Or Deeper Correction?
Ethereum is starting the year much like it ended last year — under a bearish cloud. The altcoin leader has faced a challenging start, with its price plunging more than 16% since January 6. Weak price action continues to dominate as ETH struggles to find strong support, making investors cautious about the future.
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Amid market uncertainty, top analyst Carl Runefelt has shared a technical analysis of X, providing insight into Ethereum’s potential next move. Runefelt highlighted that ETH is forming a symmetrical triangle pattern on the 1-hour timeframe, a pattern that often precedes large price moves. According to his analysis, this pattern signals a consolidation period that could lead to a bullish breakout or a bearish breakdown.
Breakthrough could bring much-needed optimism For Ethereum investors, there could be a reversal of the bearish trend and push the price to higher levels. On the other hand, a collapse could extend ETH’s current losses, raising concerns about further corrections in the near term. As the market awaits clarity, all eyes are on Ethereum’s next move, which could set the tone for its performance in the coming weeks.
Ethereum Struggle: What’s Next for the Altcoin Leader?
Ethereum investors face challenging times as price action continues to disappoint. After briefly sustaining key demand levels, many expected a shift in market sentiment. However, ETH has now fallen to its lowest price since late December, making investors anxious about its next move.
Top Analyst Karl Runefeldt Recently shared technical analysis of Xrevealing the current state of Ethereum. Runefelt revealed that ETH is forming a symmetrical triangle pattern on the 1-hour timeframe, a structure that signals a major price move is imminent. The model highlights key levels on both sides of the market, providing a roadmap to potential outcomes.
If Ethereum fails to hold $3,000 levels, a deeper correction could occur, which could lead to a significant price drop. Conversely, a recapture of the $3,500 level would signal strength, setting the stage for a massive breakout. Such a move would not only restore investor confidence but also attract new capital into the market.
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The entire market is at a crossroads, with Bitcoin holding above key support levels while altcoins including Ethereum continue to face selling pressure. As traders keep a close eye on ETH’s next move, its performance in the coming days could set the tone for the broader altcoin market.
ETH tests key support level in downtrend
Ethereum is currently trading at $3,113 after falling 6% over the past few hours, indicating continued bearish pressure on the market. Price is currently testing the daily 200 exponential moving average (EMA), a key technical indicator that can determine the next move. Holding this EMA as support could trigger a bullish recovery, giving ETH the momentum it needs to regain higher levels in the coming sessions.
However, the market remains on edge and the key support to watch is the untested $3,000 mark. This psychological and technical level has not been revisited 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, potentially setting the stage for a rebound.
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On the other hand, if ETH fails to hold the daily 200 EMA or slide below $3,000 levels, a deeper correction could occur, potentially pushing the price to new 2025 lows. With market sentiment leaning bearish and key support being tested, Ethereum’s price action will be key in shaping its short-term trend in the coming days.
Featured image from Dall-E, chart from TradingView
