TLDR
Ethereum is trading within an ascending channel, showing potential for a significant upward movement in 2025
Analyst Carl Runefelt predicts a possible pullback to $3,500 before the next major rally
ETH recently broke above the 4-hour 200 moving average at $3,629
Historical post-halving years have shown strong performance for altcoins
Current consolidation around $3,650 suggests a critical phase for ETH’s next movement
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 movement, as the cryptocurrency continues to trade within an ascending channel pattern.
Market data indicates that Ethereum has maintained its position above the crucial $3,600 support level, despite facing resistance at higher price points. The current price action represents a test of market strength, as traders closely monitor key technical indicators for signs of the next major 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, typically associated with bullish continuation, suggests that while the overall trend remains positive, a temporary retracement could occur before the next leg up.
The 4-hour chart shows Ethereum trading above its 200 moving average at $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, although not yet at levels typically associated with major breakouts.
Historical data from previous market cycles, particularly 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 short term. This price point has acted as a strong foundation during previous market movements and continues to be watched by traders as a potential entry point.
On-chain metrics indicate healthy network activity, with steady transaction volumes and growing user adoption. These fundamental factors contribute to the overall market sentiment, even as price action remains relatively subdued in the short 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 aligns with support near the $3,500 mark.
Recent market data shows that institutional interest in Ethereum continues to grow, with increasing volumes reported across major exchanges. This institutional participation adds another layer of support to the current price levels.
The 4-hour timeframe reveals a series of higher lows, a pattern typically associated with bullish market structures. However, the shorter timeframes suggest some exhaustion in the recent upward momentum, supporting the possibility of a temporary pullback.
Trading indicators on the daily timeframe 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 been respecting key technical levels, with clear reactions at both support and resistance zones. This behavior provides traders with 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 waiting for additional confirmation before committing to larger positions. This careful approach reflects the current state of the broader cryptocurrency market.
The most recent data shows ETH holding steady above $3,650, with immediate resistance at $3,700 and support at $3,600. Trading volume remains consistent with recent averages, indicating stable market participation at current levels.
