Ethereum Consolidation Continues – Charts Signal Potential Breakout
Ethereum (ETH) has been consolidating since hitting a local high of $4,446 on November 12. While Bitcoin’s impressive rally has captured the market’s attention, Ethereum has struggled to maintain its upward momentum and regain its yearly highs. The price action reflects a period of indecision as ETH faces challenges in breaking through significant resistance levels, which could reignite bullish sentiment.
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Although Ethereum has lagged behind Bitcoin, analysts remain optimistic about its potential for a breakout. Notably, prominent cryptocurrency analyst Carl Runefelt recently shared a technical analysis suggesting that ETH is on the verge of a major move.
According to Runefelt, Ethereum must break above a key resistance level to trigger a breakout and rejoin the broader market’s bullish trend.
As the second-largest cryptocurrency by market capitalization, Ethereum’s next move will be crucial for traders and investors keeping a close eye on the market. A breakout of resistance could mark the start of a new uptrend phaseand continued consolidation may test the patience of market participants. As technical signals adjust and speculation builds, Ethereum’s price action in the coming days will likely set the tone for its performance in the coming weeks.
Ethereum prepares to soar
Ethereum’s price action has been lackluster since March, struggling to keep up with Bitcoin’s performance. Despite some notable surges, ETH has yet to achieve the breakout investors were eagerly anticipating.
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The prolonged consolidation has frustrated some traders, but those who believe Ethereum will surge higher once it breaks through key supply levels remain optimistic.
timeop Cryptocurrency analyst Carl Runefelt recently shared his technical analysis of Xhighlighting Ethereum’s current position in a bullish flag pattern. According to Runefelt, ETH has been trying to break out of this pattern for the past two weeks but has faced strong resistance in key supply areas. However, he still believes that once Ethereum breaks this level, it could quickly surge to $4,150.
The move would mark a significant jump from current prices and spark investor enthusiasm. The fear of missing out can drive additional buying motivation, creating a self-reinforcing cycle of price appreciation. If ETH follows this trajectory, it will confirm a bullish flag breakout and signal Ethereum’s return to dominance in the crypto market.
ETH Price Trend: Technical Details
Ethereum is currently trading at $3,120 after trading sideways below the recent local high of $3,446 for several days. Despite the pause in upward momentum, ETH has surged above the key 200-day moving average (MA) (currently $2,957) and has held above this key technical indicator, showing strength.
The 200-day moving average is often the key line between bullish and bearish trends. Ethereum’s ability to remain above it signals strong support from buyers and growing confidence in the market. If ETH continues to hold at these levels, it could pave the way for a bullish surge with the first target being the local top at $3,446.
Beyond that, a break above this resistance could see ETH target yearly highs near $4,000, reigniting traders and investors. The move could confirm Ethereum’s return to a sustained uptrend, bringing it closer to Bitcoin’s recent bullish performance.
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However, the loss of 200-day EMA support could pose the risk of a pullback that could lead to ETH retesting lower levels. Ethereum’s price action remains strong, with the market eagerly eyeing the next big move.
Featured image from Dall-E, chart from TradingView
