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Ethereum is trading below last year’s highs as investors eagerly await a breakout to confirm the start of the expected Altseason. Although ETH’s price action has been weak, traders remain optimistic about its ability to perform exceptionally well in 2025, given its historical cycles and the overall bullish tendencies of the market.
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Senior Analyst Karl Rohnfelt recently shared a technical analysis on X, highlighting that ETH is currently trading within an ascending channel. This pattern indicates the potential for a short-term pullback before Ethereum gains momentum for its next bullish leg. Runefelt’s analysis is in line with the cautious optimism prevailing in the market as traders monitor key support and resistance levels for signs of a breakout.
The coming weeks are crucial for Ethereum As it struggles to regain its highs and assert dominance in the cryptocurrency market. A breakout could signal the beginning of a broader altcoin rally, cementing ETH’s position as a leader in the altseason narrative. Until then, investors and traders are closely monitoring Ethereum’s price movements and technical indicators, preparing for what could be a pivotal year for the second-largest cryptocurrency.
Ethereum’s Path to 2025: Optimism Amid Consolidation
Ethereum suffered a disappointing 2024, as Bitcoin underperformed and failed to ignite the expected early altseason. However, many analysts expect a major shift this year. Historically, the post-halving years have been exceptional for altcoins, and Ethereum appears poised to capitalize on this trend. Expectations are growing that ETH will “melt faces” in 2025, delivering significant gains.
Senior analyst Carl Roenfeldt recently Share technical analysis on Xprovides a detailed look at Ethereum’s price structure. According to Runefelt, ETH is currently trading within an ascending channel after reaching its previous target.
While this pattern often indicates a continuation of an uptrend, there is also a risk of a temporary collapse. Runefelt points out that if Ethereum fails to maintain its current position, it may retest the $3,500 level before regaining bullish momentum. Presumably, such a bounce could pave the way for Ethereum’s next big rally.
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Reclaiming last year’s highs will be crucial for Ethereum, as it will cement its position as a market leader and instill confidence among traders and investors. The broader cryptocurrency market is gearing up for what many expect to be a huge 2025, with Ethereum at the forefront of a potential altcoin resurgence. Whether ETH takes off or pulls back briefly, this year could set its course for years to come.
Technical analysis: price consolidation
Ethereum is currently consolidating around the $3,650 level after a clear break above the 4-hour 200 moving average at $3,629. This breakout represents a critical moment for ETH, as it has shown renewed bullish momentum in the short term. Holding the 200 4-hour EMA as support could indicate price strength, providing a basis for Ethereum to move higher in the coming days.
However, the market remains cautious. If Ethereum fails to hold this key indicator, the price may slide to lower demand levels. Then a retest of $3,500 will become a likely scenario. This level has been an area of great interest for traders and could be the base for another potential bounce.
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The next few trading sessions will be crucial in determining whether Ethereum can build on its recent breakout or whether a pullback is in store. A sustained hold above the $3,629 level would indicate strong buyer interest and pave the way for a push towards higher resistance levels. Conversely, missing this mark could lead to consolidation or further decline, testing the resilience of Ethereum’s bullish structure.
Featured image by Dall-E, chart from TradingView
