Ethereum started the year similarly to how it ended the previous one – under a bearish cloud. The altcoin leader has had a rocky start, with its price falling more than 16% since January 6. Delicate price action continues to dominate as ETH struggles to find sturdy support, leaving investors cautious about what lies ahead.

Amid market uncertainty, top analyst Carl Runefelt shared a technical analysis of X, offering insight into Ethereum’s potential next move. Runefelt highlights that ETH is forming a symmetrical triangle pattern on the 1-hour time frame – a setup that typically precedes significant price movement. According to his analysis, this formation signals a period of consolidation that could lead to a bullish breakout or bearish breakdown.

A breakout could provide Ethereum investors with much-needed optimism, potentially reversing the bearish trend and pushing the price towards higher levels. On the other hand, a collapse could extend ETH’s current losses, raising fears of deeper corrections in the near future. As 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.

Fight for Ethereum: what’s next for the Altcoin leader?

Ethereum investors are facing challenging times as price action continues to disappoint. After maintaining key demand levels for a low period of time, many expected a change in market sentiment. However, the price of ETH has now dropped to its lowest price since behind schedule December, leaving investors anxious about its next move.

Top analyst Carl Runefelt recently shared technical analysis on Xshedding lithe on Ethereum’s current situation. Runefelt revealed that ETH is forming a symmetrical triangle on the 1-hour time frame – a structure that suggests significant price movement is imminent. The pattern highlights critical levels on both sides of the market, providing a roadmap for potential outcomes.

If Ethereum fails to stay above the $3,000 level, a deeper correction is likely and could significantly reduce the price. Conversely, a reclaim of the $3,500 level would signal strength, setting the stage for a massive breakout. Such a move would not only restore investor confidence, but also attract up-to-date capital to the market.

The market as a whole is at a crossroads, with Bitcoin holding above key support levels while altcoins, including Ethereum, continue to experience selling pressure. As investors closely monitor ETH’s next move, its performance in the coming days could set the tone for the broader altcoin market.

ETH Tests Key Support Levels Amid Downtrend

Ethereum is trading at $3,113 after a 6% decline over the past few hours, signaling continued bearish pressure in the market. Price is currently testing the 200 exponential moving average (EMA) at this level, which is a critical technical indicator that can determine the direction of the next move. Holding this EMA as support could trigger a bullish recovery, giving ETH the momentum needed to regain higher levels in the coming sessions.

However, the market remains on edge and the key level to look for support is the untested $3,000 level. This psychological and technical level has not been revisited since behind schedule November, making it a significant zone of interest for both bulls and bears. A drop to this level could generate a lot of buyer interest, potentially setting the stage for a rebound.

On the other hand, if ETH fails to maintain the daily EMA at 200 or loses the $3,000 level, a deeper correction could occur, potentially driving the price to up-to-date lows in 2025. With market sentiment leaning bearish and key supports tested, Ethereum’s price action in the coming days will be key to shaping its short-term trend.

Featured image from Dall-E, chart from TradingView