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Ethereum (ETH) is currently trading around $3,400, showing signs of indecision as it has failed to establish strong support above this critical level. The recent price action reflects a lack of conviction among traders, leaving the market in a state of constant flux. Despite this uncertainty, Ethereum has managed to hold above key support areas that could serve as a launching pad for a potential rally to new highs.
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Karl Roenfeldt, a senior cryptocurrency analyst, recently provided technical insights into Ethereum’s price action, noting that Ethereum remained within a 4-hour symmetrical triangle formation over the weekend. This pattern often indicates consolidation, with a breakout possible in either direction. While Ethereum’s current situation keeps bulls optimistic, it also highlights the importance of maintaining these key levels to prevent further downward pressure.
While traders and investors are closely watching Ethereum’s next moves, the market appears to be experiencing a pivotal moment. A decisive break above the $3,400 level could spark renewed momentum, while missing support could trigger a deeper bounce. Currently, Ethereum’s resilience at critical levels maintains the possibility of a bullish reversal, but clear trend confirmation is still elusive.
Ethereum is testing liquidity for a move
After weeks of disappointing price action and a long period of sideways trading, Ethereum appears poised to make a decisive move. The pressing question remains: Will the breakthrough be upward or downward?
Recently, famous cryptocurrency analyst Karl Roenfeldt He shared his thoughts about XWhich reveals that ETH maintained its position within the symmetrical triangle pattern for 4 hours over the weekend. This technical setup often indicates momentum building, with the potential for a major breakout in either direction. However, Ethereum’s trajectory is closely linked to Bitcoin’s performance, making BTC’s next move a deciding factor.
Runefelt has set clear goals for Ethereum based on Bitcoin’s behavior. If Bitcoin gains upward momentum, ETH could follow suit and push towards higher supply areas, with an upside target of $3,900. On the other hand, a bearish move from BTC could drag ETH lower, with the next major support level at $2,920.
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Market participants are now bracing for a potential rise in volatility as the Ethereum price consolidates within the triangle. The coming days will be pivotal, as a confirmed breakout could set the tone for ETH price action in the coming weeks. Whether it is a rally towards new highs or a decline to retest lower support levels, Ethereum is at a crucial crossroads.
Technical levels to monitor
Ethereum is trading at $3,400 after several days of oscillating between $3,300 and $3,500, reflecting market indecision. The tight trading range highlights the growing tug of war between the bulls and the bears as both sides wait for a clear signal of the next move.
For bullish momentum to regain control, ETH needs to reclaim the $3,550 level and hold it as a strong support. Doing so would likely trigger a rally towards higher resistance areas, which could pave the way for a larger breakout. However, the risks of a downward move remain. Missing the $3,300 support would expose Ethereum to sub-$3,000 levels, a scenario that could lead to further selling pressure and dampen market sentiment.
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The coming days are crucial for Ethereum as traders are closely monitoring the price behavior around these key levels. With uncertainty adding to an already cautious market atmosphere, many analysts expect a big move on the horizon.
Whether ETH will surpass resistance or slide into deeper corrections depends largely on broader market dynamics, including Bitcoin’s performance and macroeconomic trends. Currently, Ethereum’s hesitation reflects a market at a crossroads, leaving participants eager for clarity.
Featured image by Dall-E, chart from TradingView