Ethereum (ETH) Price: Technical Indicators Point to Possible Retest of $3,500 Support

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Ethereum (ETH) Technical Analysis: Ascending Channel Pattern and Short-term Pullback Expected

Currently, Ethereum (ETH) price is consolidating around $3,650 and is in an ascending channel pattern. According to technical analysis, while Ethereum's long-term bullish trend remains strong, it may face a pullback to $3,500 in the short term before continuing its upward trajectory.

Technical Indicator Overview:

Ascending Channel Pattern:

Ethereum's current price action fits the typical ascending channel pattern, which usually indicates a continuation of the bullish trend. According to Carl Runefelt's analysis, the ascending channel of ETH's price structure suggests that despite the positive market sentiment, it may experience a short-term price pullback before the next leg up.

200 Moving Average:

According to the 4-hour chart, ETH is currently trading above the 200 moving average (around $3,629), a level that has historically been a reliable indicator of market direction. ETH’s ability to stay above this moving average generally indicates the overall health of the market, especially if it maintains consolidation after a breakout.

Support & Resistance:

Support: The current market support is at $3,600, a key price level that reflects strong buying interest in the market. If the price pulls back further to $3,500, this level will become the next key support point and traders may view it as a potential entry point.

Resistance: Upside resistance is located near $3,800, an area that may pose a challenge for ETH to rise further.

Volume Analysis:

Current volume shows an accumulation pattern, indicating that market participants are preparing for possible future price fluctuations. Although buying pressure is stable, volume has not yet reached levels that are usually associated with major breakouts, meaning that the breakout is not fully completed and the market still needs further confirmation of upward momentum.

Historical Cycle Analysis:

Based on historical data, ETH has experienced strong price appreciation in the past, especially in the post-halving market cycle. This provides analysts and traders with a bullish outlook for 2025, although there may be volatility in the short term.

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