Ethereum is forming a 1-hour symmetrical triangle – Bullish Breakout or Deeper Correction?
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Ethereum started the year like it ended the previous year on a bearish cloud. The altcoin leader is facing a difficult start, with its price plummeting more than 16% since January 6. Weak price action continues to dominate as ETH struggles to find strong support, making investors cautious about what may happen next.
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Amid market uncertainty, top analyst Carl Runefelt shared technical analysis on X, providing insight into Ethereum’s potential next move. Runefelt highlights that ETH is forming a symmetrical triangle pattern on an hourly basis. This is usually set in advance of significant price movements. According to his analysis, this formation represents a period of consolidation that could lead to a bullish breakout or bearish breakdown.
A breakout could provide much-needed optimism for Ethereum investors, potentially reversing the bearish trend and driving the price to higher levels. On the other hand, a breakdown could widen ETH’s current losses, raising concerns of a deeper correction 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 are facing a difficult time as price action continues to disappoint. After holding key demand levels for a while, many expected a change in market sentiment. However, ETH has now fallen to its lowest price since late December, leaving investors anxious about its next move.
Top analyst Carl Runefelt recently shared his technical analysis on X, shedding light on the current state of Ethereum. Runefelt said ETH is forming a symmetrical triangle pattern on an hourly basis. This structure suggests that a significant price change is imminent. This pattern highlights important levels on both sides of the market, providing a roadmap to potential outcomes.
If Ethereum fails to stay above the $3,000 level, a deeper correction could occur, sending the price significantly lower. Conversely, recovering the $3,500 level would indicate strength and set the stage for a large breakout. This move will not only restore investor confidence but also attract new capital into the market.
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The market as a whole is at a crossroads, with Bitcoin holding above key support levels while altcoins, including Ethereum, continue to experience selling pressure. Its performance over the next few days could set the tone for the broader altcoin market as traders closely monitor ETH’s next move.
ETH tests a critical support level amid a downtrend.
Ethereum is trading at $3,113 after falling 6% over the past few hours, indicating continued bearish pressure in the market. The price is currently testing the daily 200 exponential moving average (EMA) at this level. This is an important technical indicator that can determine the direction of 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 next session.
However, the market remains uneasy and the key level to watch for support is the untested $3,000 mark. This psychological and technical level has not been revisited since late November, making it a key area of concern for bulls and bears alike. A decline to this level could generate strong buying interest and potentially set the stage for a rebound.
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On the other hand, if ETH fails to maintain the daily 200 EMA or loses the $3,000 level, a deeper correction could follow, potentially sending the price to new lows in 2025. With market sentiment tilting bearish and key supports being tested, Ethereum’s price action will play a pivotal role in shaping the near-term trend over the next few days.
Featured image by Dall-E, chart by TradingView
