Will Ethereum (ETH) trigger a triangle breakout rally in the new year and potentially reach the next supply zone above $3,500?
Ethereum is struggling to maintain critical levels as Bitcoin falls below $93,000. Bearish pressure on the price chart is intensifying and institutional support is at risk.
Despite these challenges, Ethereum shows potential for recovery. Can ETH price trend reverse in a V-shaped pattern leading to a breakout rally to $3,568?
Ethereum price analysis
Amid increasing price volatility in Bitcoin, Ethereum has fallen below the $3,400 mark. Taking into account the local support trendline, Ethereum has consolidated slightly above the $3,300 level.
Notably, the current market price of a single Ethereum token is $3,345. The sideways trend on the 4-hour chart shows compression over the past few days, forming a short-term triangle pattern that suggests explosive development.
As bearish pressure increases on the Ethereum price chart, the dynamic average lines are aligning with a bearish pattern. In particular, the recent negative crossover of the 100-EMA and 200-EMA lines signals a sell signal.
The 4-hour RSI line is struggling to stay above the half, supporting the bearish outlook. Meanwhile, the lack of bullish divergence at the support trendline suggests weak underlying demand.
Ethereum ETFs cost $55.41 million
Similar to Bitcoin’s spot ETF, Ethereum is seeing outflows. On December 30, Ethereum recorded a daily net outflow of $55.41 million, with Fidelity withdrawing $20.41 million. With no Ethereum ETFs seeing inflows on Monday, institutional support was dented.
ETH price targets
As Ethereum…
