Ethereum has faced challenges in regaining bullish momentum, leaving altcoin trading at a crucial level. Ethereum is in the spotlight among investors who expect potential growth in the coming weeks. This optimism is fueled by expectations that Ethereum’s resurgence could signal the start of the long-awaited alt season, bringing widespread gains to the altcoin market.

Top analyst Carl Runefelt recently shared a compelling technical analysis of X, highlighting the formation of a symmetrical triangle pattern on Ethereum on a 4-hour time horizon. According to Runefelt, this pattern is a classic breakout precursor, with a bullish target set above $3,980. Such a move would mark a robust return to growth momentum for Ethereum, strengthening its position as a leading asset in the cryptocurrency market.

Market participants are closely monitoring this trend as a confirmed breakout could catalyze a broader altcoin rally. However, Ethereum must first overcome this critical level to strengthen its bullish outlook. With the market at a crossroads, the coming weeks will be pivotal for Ethereum’s trajectory and its role in sparking the next major phase of growth in the cryptocurrency market.

Ethereum is preparing for a rally

Ethereum regained the $3,000 mark, maintaining a robust position after weeks of consolidation. ETH is currently trading in a tight range, constrained by resistance at $3,550. This critical zone caught the attention of analysts and investors who were eager to see Ethereum break its yearly highs, signaling momentum was picking up again.

Most recently top analyst Carl Runefelt shared detailed technical analysis on Xhighlighting the symmetrical triangle pattern forming on Ethereum’s 4-hour time frame. According to Runefelt, this pattern suggests a high likelihood of significant price movement, although the direction remains uncertain.

He forecasts a bullish target of $3,980 if ETH breaks out of the triangle. This level would confirm Ethereum’s strength and likely instill confidence among market participants. Conversely, if the pattern breaks down lower, Runefelt predicts a pullback to $2,920, which will pose a critical test of Ethereum’s ability to hold key support levels.

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The coming days are expected to be crucial for Ethereum as this symmetrical triangle approaches resolution. Regardless of whether ETH breaks above resistance or moves lower to retest support, the outcome will have significant implications for its short-term direction and long-term prospects. Investors are closely monitoring these moves, waiting for signals of Ethereum’s next substantial move.

Price Action: Tracking Key Demand

Ethereum is trading at $3,360, showing resilience after consolidating above the critical support level at $3,300. This zone remains a key threshold for bulls looking to maintain momentum and raise prices. Maintaining above $3,300 is indispensable as a break above this level could trigger a deeper correction, potentially retesting lower support zones and dampening bullish sentiment.

On the other hand, if ETH forms a solid base above $3,350, it could pave the way for a quick recovery. Breaking above the $3,550 resistance level would likely reignite the bullish momentum, leaving Ethereum in a position to challenge its yearly highs. This level represents a significant milestone psychologically and technically, and regaining it would represent strength in the market.

Ethereum’s ability to maintain or break these levels will determine its near-term trajectory. Analysts are positive that a rise above $3,550 could lead to rapid price increases. It reflects renewed confidence in Ethereum’s broader market performance. For now, ETH’s consolidation above $3,300 signals cautious optimism, with the potential for a pointed move in either direction depending on how these levels are defended or broken.

Featured image from Dall-E, chart from TradingView