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Ethereum (ETH) has been consolidated since November 12, when it reached a local high of $4,446. Despite Bitcoin’s impressive rally that captured the market’s attention, Ethereum struggled to maintain bullish momentum and reclaim its yearly highs. The price action reflects a period of indecision, as ETH faces challenges in breaking significant resistance levels that could reignite bullish sentiment.
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While Ethereum lags behind Bitcoin in performance, analysts remain optimistic about the possibility of a breakout. It is worth noting that Karl Ronfelt, a prominent cryptocurrency analyst, recently shared a technical analysis indicating that ETH is on the verge of a big move.
According to Runefelt, Ethereum must rise above a key resistance level to trigger a breakout and rejoin the broader market uptrend.
As the second-largest cryptocurrency by market capitalization, Ethereum’s next steps will be crucial for traders and investors closely monitoring the market. A break above the resistance level may indicate the beginning of a new bullish phasewhile continued consolidation may test the patience of market participants. As technical signals align and speculation increases, Ethereum’s price action in the coming days will likely set the tone for its performance in the coming weeks.
Ethereum is preparing to rise
Ethereum’s price action has been disappointing since March, as it struggles to keep up with Bitcoin’s performance. Despite some notable gains, ETH has yet to achieve the breakthrough that investors are eagerly anticipating.
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The prolonged consolidation has frustrated some traders, but there is still bullish sentiment among those who believe Ethereum is poised for a significant rally once key supply levels are cleared.
TCryptocurrency analyst Carl Runefelt recently shared his technical analysis on Xhighlighting Ethereum’s current position within a bull flag pattern. According to Roonevelt, ETH has been trying to break out of this formation over the past two weeks, encountering heavy resistance in critical supply areas. However, he remains confident that it could quickly rise to $4,150 once Ethereum breaks this level.
Such a move would represent a significant percentage increase over current prices, sparking a wave of investor enthusiasm. Fear of missing out (FOMO) can trigger additional buying momentum, creating a self-reinforcing price rally. If ETH follows this path, it would confirm a breakout of the bull flag and signal Ethereum’s return to a dominant position in the cryptocurrency market.
ETH Price Action: Technical Details
Ethereum is trading at $3,120 after several days of sideways consolidation below its recent local high of $3,446. Although the bullish momentum stalled, ETH showed its strength by rising above the critical 200-day moving average (MA), which currently stands at $2,957, and maintaining its position above this key technical indicator.
The 200-day moving average is often a pivot line between bullish and bearish trends. Ethereum’s ability to stay above this level indicates strong support from buyers and growing confidence in the market. If ETH continues to hold this level, it could pave the way for a bullish rally, with the first target being the local high at $3,446.
Furthermore, a break above this resistance level could see ETH targeted to reach yearly highs near $4,000, reigniting enthusiasm among traders and investors. Such a move would likely confirm Ethereum’s return to a sustained uptrend, making it more in line with Bitcoin’s recent bullish performance.
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However, missing the 200-day EMA as support could create pullback risks, which could push ETH to retest the lower levels. Ethereum price action remains strong, with the market eagerly watching the next significant move.
Featured image by Dall-E, chart from TradingView
