Will Ethereum (ETH) Trigger a Triangle Breakout Rally in the New Year, Potentially Reaching the Next Supply Zone Above $3500?

With Bitcoin dropping below $93000, Ethereum struggles to maintain critical levels. The bearish pressure on the price chart intensifies, and institutional support is at risk.

As the new year approaches, traders are eagerly watching Ethereum (ETH) price action, anticipating a potential triangle breakout rally. With Bitcoin (BTC) dropping below the $93,000 mark, ETH has faced increasing bearish pressure and is struggling to maintain critical levels.

However, despite these challenges, ETH still shows potential for a bounce back. Can the ETH price trend reverse in a V-shaped pattern, leading to a breakout rally to $3,568?

Let’s analyze the Ethereum 4-hour price chart to uncover potential price targets.

Ethereum Price Analysis: A triangle breakout in sight?

As Bitcoin price volatility increases, ETH has dropped below the $3,400 mark. While respecting the local support trendline, ETH has consolidated slightly above the $3,300 level.

At the time of writing, the market price for a single ETH token is $3,345. The 4-hour chart shows a sideways trend with compression over the past few days, forming a short-term triangle pattern that suggests an explosive move ahead.

The dynamic average lines on the ETH 4-hour price chart are aligning in a bearish pattern, with the 100-EMA and 200-EMA lines recently crossing over to signal a sell.

Further supporting the bearish outlook, the 4-hour RSI line is struggling to stay above the halfway point. At the same time, the lack of bullish divergence at the support trendline indicates weak underlying demand.

Ethereum ETFs Bleed $55.41M as ETH Price Drops Below $3,400

As Bitcoin spot ETF experiences net outflows, so does Ethereum. On December 30, ETH ETFs saw a daily net outflow of $55.41 million, with Fidelity’s ETF (PETH) withdrawing $20.41 million.

As a result, with no Ethereum ETFs seeing inflows on Monday, institutional support has taken a hit.

ETH Price Targets

As ETH prepares to bounce off the support trendline, overhead resistance is formed by the trendline and the 50-EMA line. For the bull case to continue, ETH must maintain support above the $3,400 mark.

With growing anticipation of a new year rally in the crypto market, a potential breakout rally could challenge the overhead supply zone at $3,568. On the other hand, a triangle breakdown would test the $3,244 support level.

Disclaimer: This content is informational and not intended to be financial advice. The views expressed in this article may belong to the author and do not necessarily reflect the opinion of The Crypto Basic.

Investing in cryptocurrencies, stocks, bonds, and other types of securities is inherently risky. Before making any trades, it is essential to do your own analysis and fully understand the potential gains and losses.