TLDR
- Ethereum is trading within an ascending channel, showing potential for a significant upward move in 2025
- Analyst Carl Runefelt predicts a possible pullback to $3,500 ahead of the next big rally
- ETH recently broke above the 4-hour 200 moving average at $3,629
- Historic post-halving years have shown strong growth for altcoins
- Current consolidation around $3,650 indicates a critical phase for ETH’s next move
Ethereum, the second largest cryptocurrency by market capitalization, is currently trading at $3,650, showing signs of consolidation after breaking above the 4-hour 200 moving average. Recent technical analysis suggests a potential short-term pullback before the next upward move, as the cryptocurrency continues to trade within an ascending channel pattern.
Market data indicates that Ethereum has maintained its position above the crucial support level of $3,600, despite resistance in higher price positions. The current price action represents a test of market strength, as traders closely monitor key technical indicators for signs of the next big move.
Technical analyst Carl Runefelt recently shared insights on social media platform X, highlighting the formation of an ascending channel in ETH’s price structure. This pattern, usually associated with bullish continuation, suggests that while the overall trend remains positive, a temporary retracement may occur before the next leg up.
The 4-hour chart shows Ethereum trading above its 200 moving average of $3,629, a level that has historically served as a reliable indicator of market direction. This technical setup has caught the attention of traders who note the similarity to previous market cycles.
Trading volume data reveals a pattern of accumulation at current levels, suggesting that market participants are positioning themselves for potential future price movements. The volume profile indicates steady buying pressure, but not yet at levels typically associated with major breakouts.
Historical data from previous market cycles, especially in post-halving years, shows that Ethereum tends to experience strong price appreciation during these periods. This historical precedent has led many analysts to maintain an optimistic outlook for ETH’s performance in 2025.
The current market structure suggests that a retest of the $3,500 support level could materialize in the near term. This price point has served as a strong foundation during past market moves and continues to be viewed by traders as a potential entry point.
On-chain metrics indicate healthy network activity, with steady transaction volumes and growing user usage. These fundamentals are contributing to overall market sentiment, although price developments remain relatively muted in the near term.
The technical formation of the ascending channel provides clear levels for traders to watch. The upper boundary of the channel suggests potential resistance around $3,800, while the lower boundary is aligned with support near the $3,500 mark.
Recent market data shows that institutional interest for Ethereum continues to grow, with increasing volumes reported across major exchanges. This institutional participation provides another layer of support to the current price levels.
The 4-hour time frame reveals a series of higher lows, a pattern usually associated with bullish market structures. However, the shorter timeframes suggest some exhaustion in recent upward momentum, supporting the possibility of a temporary pullback.
Trading indicators on the daily time frame maintain a generally bullish bias, although some momentum oscillators suggest overbought conditions in the near term. This technical setup often precedes short-term price corrections within larger uptrends.
Price action analysis shows that Ethereum has respected key technical levels, with clear reactions in both support and resistance zones. This behavior gives traders well-defined areas to monitor for potential entry and exit points.
The market’s reaction to the recent break above the 200 moving average suggests that traders are cautiously optimistic but are waiting for further confirmation before committing to larger positions. This cautious approach reflects the current state of the broader cryptocurrency market.
Recent data shows ETH holding steady above $3,650, with immediate resistance at $3,700 and support at $3,600. Trading volume remains in line with recent averages, indicating stable market participation at current levels.
