Ethereum (ETH) is trading above $2,600 following a 5% decline from recent highs of approximately $2,750. Over the last two weeks, ETH has maintained a positive upward trend, generating optimism in the market as investors seek additional assurances of strength in the price movements.
Leading analyst and investor Carl Runefelt has recently conducted a technical analysis, pointing out that Ethereum has emerged from a bullish formation that started developing in early August. Runefelt suggests that once ETH firms up solid demand at its current price, it is merely a matter of days before the next upward surge begins.
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As the wider cryptocurrency market gains traction, Ethereum is set to continue its ascent, with investors keeping a close eye on the confirmation of support at this pivotal level. If ETH can hold, the next upward movement may target higher price ranges, further enhancing bullish sentiment. The next few days will be crucial in deciding whether Ethereum can continue its bullish trend and leverage the ongoing market strength.
Ethereum Surpassing $2,600
This year, Ethereum has lagged behind Bitcoin, leading to worries among investors as the next bull run approaches. While Bitcoin has experienced significant gains, Ethereum has not surged with comparable strength. This disparity has caused concern among ETH holders, who anticipated that the second-largest cryptocurrency by market capitalization would spearhead the movement.
Analyst Carl Runefelt has recently presented an insightful analysis on X, featuring a price chart that shows Ethereum has broken out of a symmetrical triangle on the daily chart—a traditional bullish pattern.
Should the price action sustain, Runefelt’s analysis suggests that ETH could reach $3,400. This breakout serves as a crucial indicator for Ethereum, but its longevity hinges on whether the price can successfully retest the upper triangle line, which was previously a resistance level.
At present, Ethereum is probing support at this essential threshold, with $2,600 being the critical line to watch. A close below $2,600 would invalidate the bullish thesis of the symmetrical triangle and could result in further declines, dampening the optimism surrounding ETH’s future price movements.
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Nonetheless, if Ethereum remains above this level, it may signal that the breakout is genuine, paving the way for a significant rally as the larger market gears up for a bull run. The upcoming days will be vital for ETH’s future movement.
Price Action: Key Technical Levels to Monitor
Currently, Ethereum is valued at $2,620 after failing to recapture the 200-day exponential moving average (EMA) sitting at $2,795. The price is testing support around the critical $2,600 level, which will impact ETH’s price direction in the near future.
If Ethereum maintains its position above this level, the next target will be to surpass the 1D 200 EMA at $2,800. This price range is significant as it coincides with ETH’s local high reached in late August at $2,820.
A proven breakout above $2,800 would indicate a robust bullish continuation, making a surge towards higher levels very likely. Conversely, if ETH fails to establish itself above $2,600, the risk of a pullback to lower demand regions could become increasingly probable.
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Traders and investors are monitoring these levels closely as Ethereum attempts to regain momentum in the face of broader market uncertainty. The next few days will be essential in establishing whether ETH will maintain its upward trajectory or experience downward pressure.
Featured image from Dall-E, chart from TradingView
