Ethereum (ETH) has been trading at $3,396, dipping 0.5% in the last 24 hours as the broader crypto market faces a 1.5% loss. Despite a modest 47% gain over 2024, ETH has underperformed compared to previous years.
However, a symmetrical triangle forming on ETH’s four-hour chart suggests a significant breakout could be on the horizon, with analysts debating whether it will break upwards or downwards.
Symmetrical Triangle: What It Means for ETH
According to analyst Carl Runefelt, also known as The Moon Show, Ethereum has remained within a symmetrical triangle pattern over the weekend. Such patterns often precede strong price movements in either direction.
| Scenario | Price Target |
|---|---|
| Bullish | $3,900 |
| Bearish | $2,920 |
A breakout to $3,900 would mark ETH’s highest price since mid-December, while a drop to $2,920 would signal a bearish turn.
Bullish Catalysts for Ethereum
1. Pro-Crypto US Policies
The upcoming inauguration of a pro-crypto SEC chair and anticipated positive legislation in the US could provide a favorable regulatory environment for cryptocurrencies.
2. FTX’s Stablecoin Release
FTX’s announcement to release $12 billion in stablecoins starting January 3, 2025, could inject significant liquidity into the market, potentially sparking an altcoin rally.
3. Ethereum’s Dominance
Ethereum remains the largest layer-one blockchain, commanding more than half of the total value locked (TVL) across all crypto networks. Its dominance positions ETH for substantial growth as the broader market rebounds.
| Metric | Value |
|---|---|
| Total TVL Share | Over 50% |
| Current RSI (1H) | Above 50 |
4. Positive Momentum Indicators
Ethereum’s Relative Strength Index (RSI) on its one-hour chart has climbed past 50, indicating growing bullish momentum. This trend suggests ETH could surpass $3,500 in the short term, with a potential target of $4,000 by the end of January.
Bearish Risks
While the long-term outlook remains positive, there are risks to consider:
- Short-Term Volatility: The symmetrical triangle pattern could lead to significant downward movement if ETH breaks below its support level.
- Market Sentiment: Concerns around Donald Trump’s inauguration have led some analysts to predict a short-term market dip.
- Macro Factors: Broader economic uncertainties could weigh on crypto prices, including Ethereum.
Long-Term Outlook
Despite potential short-term fluctuations, the long-term prospects for Ethereum remain optimistic. Analysts expect Bitcoin to reach new all-time highs in 2025, and Ethereum is likely to follow suit.
Predictions suggest that ETH could test its previous all-time high of $4,878 and even surpass it as adoption of decentralized finance (DeFi) and other blockchain applications continues to grow.
Ethereum’s symmetrical triangle pattern suggests that a big price movement is imminent. While the direction remains uncertain, ETH’s strong fundamentals and upcoming market catalysts position it for substantial growth in 2025.
Investors should monitor support and resistance levels closely while keeping an eye on broader market conditions.
