Ethereum is currently trading at $2,500, reflecting a 9% pullback from its recent highs after it struggled to establish a higher high above $2,820. This retracement has reignited investor interest, with acclaimed analyst Carl Runefelt offering a technical analysis that suggests a promising setup for accumulation.
Potential Accumulation Opportunity for Long-Term Investors
Runefelt emphasizes a bullish pattern emerging within Ethereum’s price action, hinting that this pullback could be an optimal moment for long-term holders to accumulate more Ethereum ahead of a potential rally.
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The upcoming days are critical for Ethereum as the cryptocurrency market closely observes Bitcoin’s attempt to break its all-time highs. If Bitcoin succeeds, it could signal a new bull run, potentially carrying Ethereum along. The crypto community is keenly watching to see if Ethereum can maintain its position above $2,400 and eventually surpass the resistance at $2,820, which could pave the way for more significant gains.
Ethereum’s Sideways Consolidation
Ethereum has been trailing behind Bitcoin and several other altcoins, such as Solana, which have recently experienced more vigorous price action. This underperformance has caught the attention of both analysts and investors, including the renowned analyst Carl Runefelt. He recently shared a comprehensive technical analysis on the social platform X.
Runefelt highlights Ethereum’s current formation around an ascending support level, suggesting that ETH’s present price could offer one of the best accumulation opportunities before a potential rally. According to his analysis, the critical ascending support level stands at approximately $2,450. This level has remained firm despite Ethereum’s pullbacks, maintaining a bullish structure.
Key Support and Potential Breakout
Runefelt notes that if Ethereum continues to trend downward, this support level could be an attractive entry point for long-term investors looking to accumulate ETH while it remains relatively undervalued. The chart formation indicates a possible price floor, which, if buyers intervene, could catalyze a move toward higher levels.
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On the upside, Ethereum faces a significant resistance at $2,800. Breaking through this resistance could trigger a substantial upward movement, potentially aligning Ethereum with broader market trends if Bitcoin reaches new all-time highs. Successfully clearing the $2,800 level would confirm the bullish pattern and likely fuel a surge in price action.
This breakout could signify that Ethereum is ready to catch up to Bitcoin and outperform altcoins, creating a more favorable outlook for ETH in the broader market landscape. The next few days are crucial for Ethereum’s trajectory as it continues to maintain its position above the ascending support level. Traders and investors are closely monitoring to see if ETH can break out of its recent underperformance and reclaim its position as a leading altcoin.
ETH Technical Details
Ethereum is trading at $2,505 after a failed attempt to maintain its position above the 4-hour 200 moving average (MA) at $2,530. This slip below the 200 MA has placed ETH in a precarious position as it seeks new demand levels to stabilize the recent retrace. The price is nearing a crucial support level, and breaking below this area could trigger a significant correction, adding considerable downside risk to Ethereum’s current price action.
Crucial Support and Potential Recovery
To avoid a deeper drop, finding support around the $2,450 mark is essential for Ethereum. If buyers step in and manage to keep ETH above this level, it would signal a positive shift in momentum. An even stronger bullish indicator would be if ETH rebounds and pushes above the $2,550 level, which would help restore confidence in the asset and signal a potential recovery phase.
Such a move could mark the end of the retrace and position ETH for further upside in the coming sessions. However, until the price finds solid footing, ETH remains vulnerable to further declines, making this a pivotal moment for the asset’s short-term outlook.
