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Ethereum is trading at $2,500, following a 9% decline from recent highs after failing to reach a higher high above $2,820. This backlash has led to renewed interest among investors, with top analyst and investor Carl Runefelt sharing a technical analysis that points to a promising setup for accumulation.
Runefelt highlights a bullish pattern emerging in ETH’s price action, indicating that this retracement could be an excellent opportunity for long-term holders to accumulate more Ethereum ahead of a potential rally.
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The coming days will be crucial for Ethereum as the crypto market closely watches Bitcoin’s attempt to break its all-time highs. If BTC were to achieve this feat, it would confirm a new bull run, which would likely yield Ethereum.
The crypto community is eagerly waiting to see if Ethereum can hold its ground above $2,400 and eventually surpass the resistance at $2,820, potentially paving the way for higher gains. Ethereum’s current levels and consolidation phase suggest that a decisive move could occur soon, making this a pivotal moment for ETH’s trajectory in the broader market cycle.
Ethereum lateral consolidation
Ethereum is lagging behind Bitcoin and several other altcoins like Solana, which have recently experienced more robust price action. This underperformance has caught the attention of analysts and investors alike, including top analyst Carl Runefelt, who recently shared an in-depth technical analysis on X.
Runefelt highlights Ethereum’s current formation around a rising support level, suggesting that ETH’s current price could provide one of the best accumulation opportunities ahead of a potential rally.
Runefelt’s analysis points to a crucial rising support level around $2,450, which has remained stable despite Ethereum’s pullback and maintains a bullish structure. He emphasizes that if Ethereum continues to decline, this support could be an attractive entry point for long-term investors looking to accumulate ETH while it is relatively undervalued.
The chart formation suggests a possible price bottom, which, if buyers intervene, could catalyze a move to higher levels.
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On the upside, Ethereum is facing a key resistance at USD 2,800. Runefelt notes that breaking through this resistance could trigger significant upside, potentially bringing ETH in line with broader market trends if BTC were to reach new all-time highs.
If Ethereum successfully breaches the USD 2,800 level, it would confirm the bullish pattern and likely trigger a wave of price action. This breakout could signal that Ethereum is poised to overtake Bitcoin and outperform altcoins, creating a more favorable outlook for ETH in the broader market landscape.
The coming days will be crucial for Ethereum’s trajectory as it remains above the rising support level. Traders and investors are keeping a close eye on whether ETH can break out of its recent underperformance and regain its position as the altcoin leader.
ETH Technical details
Ethereum is trading at $2,505 after failing to hold above the 4-hour 200 moving average (MA) at $2,530. This drop below the 200 MA has put ETH in a precarious position as it looks for new demand levels to stabilize the recent pullback. The price is approaching a crucial support level, and if this level falls it could trigger a significant correction, adding significant downside risk to Ethereum’s current price action.
For Ethereum to avoid a deeper decline, finding support around $2,450 is essential. If buyers intervene and manage to keep ETH above this level, it would mark a positive shift in momentum. An even stronger bullish indicator would be if ETH recovers and rises above the USD 2,550 level, which would help restore confidence in the asset and signal a potential recovery phase.
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Such a move could mark the end of the pullback and position ETH for further upside in the coming sessions. However, until the price finds a solid footing, ETH remains vulnerable to further declines, making this a crucial moment for the asset’s short-term prospects.
Featured image of Dall-E, chart from TradingView
Credit : www.newsbtc.com
