Technical indicators point to a retest of the $3,500 support

TLDR

Analyst Carl Runefel, who is trading in an ascending channel with Ethereum showing the possibility of a major upward move in 2025, predicts a possible return to $3,500. Strong performance for altcoins Current consolidation around $3,650 points to critical level for ETH's next move

Ethereum, the second largest 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 the possibility of a short-term reversal before the next upward move, as the cryptocurrency continues to trade in an upward channel pattern.

According to market data, Ethereum continues to hold its position above the critical $3,600 support level despite resistance at higher price points. 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 upward channel in the ETH price structure. This pattern, especially associated with a bullish continuation, suggests that while the overall trend is positive, a temporary recovery may occur before the next leg up.

The 4-hour chart shows Ethereum trading above the 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 similar to previous market cycles.

Trading volume data shows a pattern of accumulation at current levels, suggesting that market participants are positioning themselves for future price movements. Although not at levels typically associated with major breakouts, the volume profile indicates steady buying pressure.

Historical data from previous market cycles shows that especially in the semi-annual period, Ethereum tends to show strong price appreciation during these periods. This historical precedent has led many analysts to be optimistic about ETH's performance in 2025.

The current market structure suggests that a retest of the $3,500 support level could be realized in the near term. This price point has served as a strong base during previous market moves and continues to be seen as a potential entry point by traders.

On-chain metrics indicate healthy network activity, with steady transaction volumes and growing user adoption. Although price action is relatively low in the short term, these fundamental factors contribute to overall market sentiment.

An ascending channel technical formation provides clear levels for traders to observe. The upper boundary of the channel shows 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 volumes reported on major exchanges increasing. This institutional participation adds another layer of support to current price levels.

The 4-hour timeframe shows a series of high lows, which is typically associated with bullish market structures. However, the shorter timeframes suggest some weakening in the recent upward momentum, supporting the possibility of a temporary pullback.

Although some momentum swings suggest overbought conditions in the near term, trading indicators on the daily time frame generally contain significant biases. This technical setup often precedes short-term price corrections in larger uptrends.

Price action analysis shows that Ethereum has been observing key technical levels with clear responses in both support and resistance zones. This feature provides well-defined areas for traders to control their entry and exit points.

The market's reaction to the break above the 200 moving average suggests that traders are bullish on the upside but are waiting for further confirmation before committing to a bigger position. This cautious approach reflects the current state of the broader cryptocurrency market.

The most recent data shows that ETH is holding above $3,650, with immediate support at $3,700 and $3,600. Trading volume remains in line with recent averages, indicating stable market participation at current levels.