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Ethereum (ETH) has been consolidating since November 12, hitting a local high of $4,446. Despite Bitcoin’s impressive rally gaining market attention, Ethereum has struggled to maintain upward momentum and regain its yearly highs. The price action reflects a period of indecision as ETH struggles to break through significant resistance levels that could reignite bullish sentiment.
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Ethereum is lagging behind Bitcoin in terms of performance, but analysts remain optimistic about its chances of a breakthrough. In particular, renowned cryptocurrency analyst Carl Runefelt recently shared technical analysis suggesting that ETH is ahead of a big move.
According to Runefelt, Ethereum needs to break above a key resistance level to trigger a breakout and rejoin the broader market’s bullish trend.
The next steps for Ethereum, the second-largest cryptocurrency by market capitalization, will be very important to traders and investors who follow the market closely. A break above resistance could signal the start of a new upward phase, while continued consolidation could test the patience of market participants. Ethereum’s price action over the next few days will set the tone for performance in the coming weeks as technical signals adjust and speculation takes place.
Ethereum is preparing to surge
Ethereum has been underwhelming in price action since March, struggling to keep up with Bitcoin’s performance. Despite some notable surges, ETH has yet to achieve the breakthrough investors are eagerly anticipating.
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While the prolonged consolidation has left some traders frustrated, optimistic sentiment remains among those who believe Ethereum is poised for a significant rebound once it clears key supply levels.
Leading cryptocurrency analyst Carl Runefelt recently shared his technical analysis on X, highlighting Ethereum’s current position within a bullish flag pattern. According to Runefelt, ETH has attempted to break out of this structure over the past two weeks, facing strong resistance in key supply zones. However, he is confident that Ethereum could surge to $4,150 if it breaches this level.
Such a move would represent a significant percentage increase over the current price and would spark a wave of investor enthusiasm. Fear of Missing Out (FOMO) can fuel additional buying momentum, creating a self-reinforcing upward price cycle. If ETH follows this trajectory, it will confirm a breakout of the bullish flag and signal Ethereum’s return to its dominant position in the cryptocurrency market.
ETH Price Action: Technical Details
Ethereum is trading at $3,120 after trading sideways for several days below the recent local high of $3,446. Despite the stalled upward momentum, ETH showed its strength by surging above the critical 200-day moving average (MA), currently at $2,957, and maintaining its position above this key technical indicator.
The 200-day MA is often the pivotal line between a bullish and bearish trend. Ethereum’s ability to hold above that indicates strong support from buyers and growing confidence in the market. If ETH continues to hold at this level, the first target could be $3,446, which could pave the way for a strong local high.
Beyond that, a break above this resistance level could see ETH targeting a yearly high near $4,000, reigniting enthusiasm among traders and investors. This move would confirm Ethereum’s return to a sustained upward trend and align more closely with Bitcoin’s recent bullish performance.
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However, a loss of the 200-day MA due to support could create downside risk and could potentially send ETH to retest lower levels. Ethereum’s price action remains strong and the market is eagerly watching for the next significant move.
Featured image by Dall-E, chart by TradingView