Ethereum is trading below last year’s highs as investors eagerly await a breakout that will confirm the start of the anticipated Altseason. Although ETH price movements have been muted, investors remain confident about ETH’s potential to perform exceptionally well in 2025 given historical cycles and the overall bullish market sentiment.

Top analyst Carl Runefelt recently shared a technical analysis of X, highlighting that ETH is currently trading in a rising channel. This pattern suggests the possibility of a short-term pullback before Ethereum gains momentum for another upside leg. Runefelt’s analysis is part of the cautious optimism prevailing in the market as investors monitor key support and resistance levels for signs of a breakout.

The coming weeks will be critical 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, solidifying ETH’s position as a leader in the Altseason narrative. Until then, investors and traders are closely watching 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 in the face of consolidation

Ethereum suffered a disappointing 2024, underperforming Bitcoin and failing to usher in the expected early Altseason. However, many analysts are predicting a dramatic turnaround this year. Historically, the post-halving years have been exceptional for altcoins, and Ethereum appears poised to benefit from this trend. Expectations are growing that ETH will “melt faces” in 2025, delivering significant gains.

Most recently top analyst Carl Runefelt shared technical analysis on Xoffering detailed insight into Ethereum’s price structure. According to Runefelt, after achieving its previous target, ETH is currently in an ascending channel.

While this pattern often signals a bullish continuation, there is also the risk of a momentary breakdown. Runefelt suggests that if Ethereum fails to maintain its current position, it could test the $3,500 level again before regaining upward momentum. In his opinion, such a pullback could set the stage for Ethereum’s next massive rally.

Recovering from last year’s highs will be crucial for Ethereum as it would strengthen its market leadership and instill confidence among traders and investors. The broader cryptocurrency market is gearing up for what many believe will be a huge year in 2025, with Ethereum at the forefront of a potential altcoin resurgence. Whether ETH explodes or briefly retreats, this year could determine its trajectory for years to come.

Technical analysis: Price consolidation

Ethereum is currently consolidating around the $3,650 level after making a pristine break above the 4-hour 200 moving average at $3,629. This breakout was a critical moment for ETH as it showed renewed momentum in the low term. Holding the 200 4-hour moving average as support could signal price strength, offering Ethereum a basis for further growth in the coming days.

However, the market remains cautious. If Ethereum fails to maintain this key indicator, the price may drop to lower demand levels. A retest of the $3,500 level would then become a likely scenario. This level is an vital area of ​​interest for traders and may constitute the basis for another potential rebound.

The next few trading sessions will be crucial in determining whether Ethereum can build on the recent breakout or face a pullback. A sustained hold above the $3,629 level would indicate mighty buying interest and open the way for a push towards higher resistance levels. Conversely, a loss of this mark could lead to consolidation or further declines, testing the resilience of Ethereum’s bullish structure.

Featured image from Dall-E, chart from TradingView