Ethereum — Where We Are And What Could Be Next?

Ethereum is approaching a decisive moment that might define the price action of the next weeks.

But let's start with the status quo: Similar to Bitcoin and many altcoins, Ethereum experienced a sharp decline when the price dropped almost 20% from 4,000 to 3,300.

The drop happened after Ethereum saw two (unsuccessful) attempts to break above the crucial 4k resistance—a typical double-top pattern.

Unfortunately, Ethereum's price also dropped below the downtrend line, which started in March 2023. Currently, ETH trades between the support at 3,300 and the downtrend line in a small area, which is constantly narrowing.

What's next?

While Ethereum could continue its sideways move for some time, it will be essential if it breaks above the downtrend line or drops below the support line.

A break above the downtrend line opens the window for a move back to 4k. In the negative case, there's a considerable risk that ETH drops to 2,800.

Ethereum and Altseason

Although Ethereum's influence is much lower than in the last cycle, it will still play an essential role in a broader altseason. However, I don't see a fully-fledged altseason until ETH breaks above 4,000. This, in my opinion, is one of the strongest start signals.