Ethereum (ETH) has underperformed in recent weeks, with its price action leaving investors disappointed after last week’s crash and increased volatility. Despite initial hopes of recovery, ETH has struggled to regain momentum, trending down since mid-December. This lack of upward movement has left investors eagerly awaiting a surge that could pull Ethereum out of its current slump.

Moreover, top analyst Carl Runefelt recently shared technical analysis suggesting that Ethereum may be preparing for another significant move. According to Runefelt, ETH is forming a 4-hour symmetrical triangle, a pattern often associated with periods of consolidation before a breakout. While the direction of the breakout remains uncertain, the pattern indicates that a decisive move may be on the horizon.

As Ethereum oscillates near key levels, market participants are closely monitoring the triangle’s resolution. An upward breakout may reignite bullish sentiment, while a breakdown may signal further fights for the largest altcoin. As the broader cryptocurrency market shows signs of recovery, the coming days will be crucial for Ethereum to prove its resilience and re-establish itself as a leading performer in this space. All eyes are now on ETH’s next move.

Ethereum Consolidates Before Move

Ethereum is currently in a short-term consolidation phase, trading between key supply and demand levels as the market grapples with uncertainty. While analysts expect a significant move, the direction remains unclear due to increased volatility and mixed investor sentiment. ETH’s price action reflects a market in wait-and-see mode, with traders closely monitoring key technical levels for signs of a breakout.

Most recently top analyst Carl Runefelt shared his technical analysis on Xhighlighting Ethereum’s preparations for its next significant move. According to Runefelt, ETH is forming a 4-hour symmetrical triangle, a pattern that often precedes a decisive breakout. He noted that this setup covers both bullish and bearish scenarios, depending on the direction of the breakout.

If ETH breaks above the triangle, a bullish target will be set at around $3,900, signaling the potential start of a modern bullish phase. Conversely, a break below the triangle would point to a bearish target near $2,720, which would point to further declines. Runefelt stressed the importance of monitoring this pattern as it develops, as the outcome could set the tone for the next trend on Ethereum.

As market sentiment remains uncertain and volatility remains high, Ethereum’s symmetrical triangle provides a clear framework for investors. Regardless of whether the breakout is bullish or bearish, it will likely be the beginning of a significant move shaping Ethereum’s trajectory in the coming weeks. For now, investors are keeping a close eye on this critical technical pattern.

Volatility drives the market

Ethereum is currently trading at $3,317, moving in a market dominated by massive volatility. This increased price action has become a major driving force for speculation and uncertainty among traders. As Ethereum struggles to stabilize, maintaining above critical support levels is imperative to maintaining a bullish structure and avoiding further declines.

The $3,300 level has emerged as a key support area that bulls need to defend to maintain momentum. If ETH maintains this level and forcefully breaks through the resistance at $3,550, it could solidify the bullish outlook and potentially lead to a stronger recovery. Breaking this level would also signal renewed confidence among investors, opening the door to a more sustained uptrend.

However, market uncertainty also carries the risk of a deeper correction. Losing the psychological $3,000 level could trigger additional selling pressure, leading to a dramatic decline and testing of lower support zones. Such a move would challenge ETH’s resilience and likely prolong its consolidation phase.

As the market waits for clearer signals, Ethereum’s ability to sustain above key levels will be closely watched. The coming days will be crucial in determining whether ETH can maintain its structure or face further volatility and downward pressure.

Featured image from Dall-E, chart from TradingView.