Ethereum started 2024 in a slump, dropping over 16% since January 6th. It’s struggling to find support, leaving investors worried.
A Symmetrical Triangle Forms
Analyst Carl Runefelt spotted something interesting: Ethereum is forming a symmetrical triangle on the 1-hour chart. This pattern usually means a big price swing is coming, but in which direction?
It’s a waiting game. The triangle could resolve with either a bullish breakout (price goes up) or a bearish breakdown (price goes down). A breakout would be great news for Ethereum investors, potentially reversing the current downtrend. A breakdown, however, would likely extend the losses.
Ethereum’s Current Struggle
Things are tough for Ethereum investors right now. After briefly holding onto some key support levels, the price dropped to its lowest point since late December. Runefelt’s analysis highlights crucial levels:
- Holding above $3,000: Essential for avoiding a deeper correction.
- Reclaiming $3,500:
Signals strength and could lead to a significant price increase.
The broader crypto market is also at a crossroads. Bitcoin is holding up better than some altcoins, which are facing selling pressure, including Ethereum.
Testing Crucial Support: $3,000
Ethereum is currently trading around $3,113 after a recent drop. It’s testing the 200-day exponential moving average (EMA), a key technical indicator.
- Holding the EMA:
Could trigger a bullish recovery. - Breaking below $3,000: This untested level since late November could lead to a much deeper correction, potentially setting new lows for 2024.
The next few days are critical for Ethereum. The market sentiment is bearish, and these key support levels are under pressure. The short-term trend depends entirely on how Ethereum performs.
