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Ethereum started the year much like it ended last year, under a bearish cloud. The altcoin leader has had a rough start, with its price falling more than 16% since January 6. Weak price action continues to take hold as ETH struggles to find solid support, leaving investors wary about what lies ahead.
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Amid the market uncertainty, senior analyst Karl Roenfeldt shared a technical analysis of X, providing insight into the potential next step for Ethereum. Runefelt highlights that ETH is forming a symmetrical triangle pattern on the 1-hour time frame – a setup that typically precedes a major price move. According to his analysis, this formation indicates a period of consolidation that could lead to either an upward breakout or a downward breakdown.
A breakout could provide much-needed optimism for Ethereum investors, potentially reversing the downtrend and pushing the price towards higher levels. On the other hand, a collapse could extend ETH’s current losses, raising concerns about deeper corrections in the near term. While the market waits for 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 difficult times, with disappointing price action continuing. After holding key demand levels for a brief period, many expected a shift in market sentiment. However, ETH has now fallen to its lowest price since late December, leaving investors worried about its next move.
Senior Analyst Carl Rohnfeldt Technical analysis was recently shared on Xhighlighting the current state of Ethereum. Runefelt revealed that ETH is forming a symmetrical triangle pattern on the 1-hour time frame – a structure that indicates a major price movement is imminent. This pattern highlights critical levels on both sides of the market, providing a road map to potential outcomes.
If Ethereum fails to hold above the $3,000 level, a deeper correction is likely, which could push the price significantly lower. Conversely, a reclaiming of the $3,500 level would signal strength, paving the way for a massive breakout. Such a move will not only restore investor confidence, but will also attract new capital into the market.
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The market as a whole is at a crossroads, with Bitcoin remaining above key support levels while altcoins, including Ethereum, continue to face selling pressure. While traders are closely watching ETH’s next move, its performance in the coming days could set the tone for the broader altcoin market.
ETH is testing crucial support levels amid the downtrend
Ethereum is trading at $3,113 after a 6% decline in the past few hours, indicating continued downward pressure in the market. The price is now testing the 200 Exponential Moving Average (EMA) at this level, which is an important technical indicator that can determine the direction of the next move. Holding this moving average as support could lead to a bullish recovery, giving ETH the momentum needed to recover to higher levels in the coming sessions.
However, the market is still on a roll, and the key level to watch for support is the untested $3,000 level. This psychological and technical level has not been revisited since late November, making it a huge area of interest for both bulls and bears. A decline to this level could attract strong buying interest, which could pave the way for a bounce.
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On the flip side, if ETH fails to sustain the 200 daily EMA or loses the $3,000 level, a deeper correction could occur, which could push the price to new lows for 2025. With market sentiment tending to decline and testing key support , Ethereum’s price movement rise in the next few days will be pivotal in shaping its short-term trend.
Featured image by Dall-E, chart from TradingView
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