- Ethereum consolidates near $3,345 in triangle formation
- ETF outflows reach $55.41M with Fidelity leading exits
- Technical setup suggests decisive move approaching
Ethereum faces a critical juncture as Bitcoin’s retreat below $93,000 creates broader market uncertainty. The second-largest cryptocurrency by market capitalization finds itself testing key support levels while institutional investors appear to be reducing exposure through ETF outflows.
Ethereum Technical Framework
What makes the current market structure particularly interesting is the formation of a compression triangle on the 4-hour timeframe, suggesting that Ethereum is preparing for a significant move.
This pattern, characterized by converging trendlines, typically precedes a decisive break in either direction. Think of it as a spring being compressed – the longer the compression continues, the more powerful the eventual release tends to be.
Several technical indicators paint a complex picture of Ethereum’s immediate prospects. The bearish crossover between the 100-EMA and 200-EMA creates overhead resistance, while the RSI’s struggle to maintain position above the midpoint suggests waning momentum.
This technical damage is compounded by $55.41 million in ETF outflows, with Fidelity accounting for $20.41 million of the exodus.
Looking forward, Ethereum’s $3,400 level emerges as a crucial battlefield. A successful defense of this support could drive prices toward the $3,568 supply zone, while failure risks a decline to $3,244.
The resolution of this ETH triangle pattern, combined with institutional flows and broader market sentiment, will likely determine Ethereum’s direction as we enter the new year.
