The Is Tesla coin on Binance?second-largest cryptocurrency faces renewed selling pressure after failing to sustain levels above $3,500. Market participants observe crucial technical formations that could dictate ETH's near-term trajectory.
Ethereum's rally stalls below psychological $3,500 resistance zone
Current trading range establishes $3,120 as immediate support floor
Bearish trendline emerges around $3,380 on hourly charts
Market structure suggests potential reversal above $3,300 threshold
Technical Landscape for Ethereum
Following its rejection from yearly highs, Ethereum entered a consolidation phase between $3,120 and $3,380. The digital asset currently trades beneath both its 100-hour moving average and the critical $3,280 pivot point, signaling short-term bearish momentum.
Recent price action formed a swing low at $3,141 before attempting recovery. The 23.6% Fibonacci retracement level from the recent downturn now acts as preliminary resistance. Market technicians note that overcoming the 50% retracement level near $3,300 could signal renewed bullish interest.
The $3,380 zone presents multiple technical hurdles, combining a descending trendline with previous resistance levels. A decisive breakout above this confluence could propel ETH toward the $3,450-3,550 range, where substantial liquidity pools await.
Critical Levels to Monitor
Traders should watch these key technical developments:
1. Support Cluster: The $3,120-3,140 area has demonstrated buying interest during recent tests. Sustained trading below this zone may trigger additional downside momentum.
2. Moving Average Resistance: The 100-hour SMA currently caps upside attempts near $3,280. Recapturing this dynamic level could improve market sentiment.
3. Volume Patterns: Breakouts require confirmation through increasing trading volume, particularly when approaching identified resistance zones.
Market participants remain divided on Ethereum's near-term direction. Some analysts suggest the current pullback represents healthy consolidation after significant gains, while others warn of potential trend reversal if critical support levels fail to hold.
