Ethereum (ETH) has been consolidating since November 12, when it reached a local high of $4,446. Despite Bitcoin’s impressive growth capturing the market’s attention, Ethereum has struggled to maintain its upward momentum and regain yearly highs. The price action reflects a period of indecision as ETH faces challenges in breaking above significant resistance levels that could reignite bullish sentiment.

Although Ethereum lags behind Bitcoin in terms of performance, analysts remain confident about its breakout potential. It is worth noting that Carl Runefelt, a prominent cryptocurrency analyst, recently shared a technical analysis suggesting that ETH is on the verge of a major move.

According to Runefelt, Ethereum needs to break above a key resistance level to trigger a breakout and return to the bullish trend in the broader market.

As the second-largest cryptocurrency by market capitalization, Ethereum’s next steps will be crucial for traders and investors closely watching the market. A break above resistance could signal the beginning of a recent growth phase, while further consolidation could test the patience of market participants. As technical signals level out and speculation builds, Ethereum’s price action in the coming days will likely set the tone for its performance in the coming weeks.

Ethereum is preparing for growth

Ethereum has been showing disappointing price action since March as it struggles to keep pace with Bitcoin’s performance. Despite some notable gains, ETH has yet to achieve the breakout that investors are eagerly awaiting.

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The prolonged consolidation has frustrated some traders, but bullish sentiment remains among those who believe Ethereum is poised for significant growth once key supply levels are cleared.

Top crypto analyst Carl Runefelt recently shared his technical analysis on Xhighlighting Ethereum’s current position within a bullish flag pattern. According to Runefelt, over the past two weeks, ETH has been trying to break out of this formation, encountering robust resistance in critical supply zones. However, he remains confident that it can quickly rise to $4,150 once Ethereum breaks above this level.

Such a move would represent a significant percentage enhance over current prices, sparking a wave of enthusiasm among investors. Fear of missing out (FOMO) can enhance purchasing momentum, creating a self-reinforcing cycle of price appreciation. If ETH follows this trajectory, it would confirm the break 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 the recent local high of $3,446. Despite the break in the uptrend, ETH showed strength by rising 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 key line between bullish and bearish trends. Ethereum’s ability to stay above this level signals solid support from buyers and growing confidence in the market. If ETH continues to hold at this level, it could pave the way for a bullish move with its first target being a local high of $3,446.

Additionally, a break above this resistance level could see ETH aim for yearly highs near $4,000, reigniting enthusiasm among traders and investors. Such a move would likely confirm Ethereum’s return to a sustained uptrend, bringing it more closely in line with Bitcoin’s recent bullish performance.

However, the loss of the 200-day MA as support could introduce pullback risk, potentially sending ETH to retest lower levels. Ethereum’s price action remains robust and the market is eagerly awaiting its next significant move.

Featured image from Dall-E, chart from TradingView