Ethereum (ETH) has been consolidating since reaching a local high of $4,446 on November 12. While Bitcoin's impressive rebound has attracted market attention, Ethereum has struggled to maintain upward momentum and reclaim its annual high. The price action reflects a period of indecision as ETH faces challenges in breaking through critical resistance levels that could reignite bullish sentiment.
Although Ethereum has lagged behind Bitcoin in performance, analysts remain optimistic about its breakout potential. Notably, renowned crypto analyst Carl Runefelt recently shared a technical analysis indicating that ETH is on the brink of a significant move.
According to Runefelt, Ethereum must break through key resistance levels to trigger a breakout and rejoin the broader market bullish trend.
As the second-largest cryptocurrency by market capitalization, Ethereum's next move is crucial for traders and investors closely watching the market. A breakout above resistance levels may signal the start of a new rally phase, while continued consolidation could test the patience of market participants. With technical signals adjusting and speculation building, Ethereum's price movements in the coming days may set the tone for its performance in the weeks ahead.
Ethereum is poised for a surge
Since March, Ethereum's price action has been impressive, struggling to keep pace with Bitcoin's performance. Despite several notable surges, ETH has yet to achieve the breakout investors eagerly anticipate.
Related reading: Solana analyst anticipates a pullback before breaking ATH - target unveiled
The prolonged consolidation has left some traders feeling frustrated, but those who believe that Ethereum will experience a significant rebound once it clears key supply levels remain optimistic.
Top crypto analyst Carl Runefelt recently shared his technical analysis of X, highlighting Ethereum's current position in a bullish flag pattern. According to Runefelt, ETH has been attempting to break this formation for the past two weeks but faces strong resistance in a key supply zone. Nevertheless, he remains confident that once Ethereum breaks this level, it could swiftly surge to $4,150.
This move would signify a substantial increase from the current price, sparking a wave of enthusiasm among investors. Fear of missing out (FOMO) could drive additional buying momentum, creating a self-reinforcing cycle of price appreciation. If ETH follows this trajectory, it will confirm the bullish flag breakout and mark Ethereum's return to dominance in the crypto market.
ETH price action: Technical details
After several days of consolidation below the recent local high of $3,446, Ethereum is trading at $3,120. Although the upward momentum has paused, ETH surged above the key 200-day moving average (MA), currently at $2,957, and maintained its position above this critical technical indicator, indicating strength.
The 200-day moving average typically serves as a key line between bullish and bearish trends. Ethereum's ability to maintain above it indicates strong support from buyers and increasing confidence in the market. If ETH continues to hold this level, it could pave the way for a bullish surge, with the first target being the local top of $3,446.
Moreover, breaking this resistance level could see ETH targeting annual highs near $4,000, reigniting enthusiasm among traders and investors. This move could confirm Ethereum's return to a sustained upward trend, aligning it more closely with Bitcoin's recent bullish performance.
However, losing the 200-day moving average as a support level could bring a risk of a pullback, potentially leading ETH to retest lower levels. Ethereum's price action remains strong, with the market eagerly anticipating the next major move.
