Bulls Defend Critical Support as $3,500 Beckons
TLDR
Ethereum has shown strong bullish momentum, breaking above $3,400 and maintaining support despite minor corrections
A key bullish trend line has formed with support at $3,400 on the hourly chart
Technical indicators, including MACD and RSI, suggest positive momentum in the bullish zone
Major resistance levels are established at $3,500 and $3,550, with potential for movement toward $3,650
Support levels remain solid at $3,400 and $3,350, providing a safety net for current price levels
The cryptocurrency market is witnessing renewed interest in Ethereum (ETH) as the second-largest cryptocurrency by market capitalization maintains its position above the crucial $3,400 support level. Recent price action shows ETH forming a series of higher lows while consolidating below the $3,500 resistance mark.
In recent trading sessions, Ethereum demonstrated remarkable resilience by establishing strong support above $3,220, initiating a fresh upward movement while Bitcoin underwent a correction phase. The upward momentum gained traction as ETH successfully breached several key resistance levels, including $3,420 and $3,450.
The bullish sentiment became more apparent when ETH surpassed the $3,500 threshold, reaching a local high of $3,545. Following this peak, a minor correction occurred, with the price retreating below $3,500, though maintaining stability above crucial support zones.
Technical analysis reveals a constructive market structure, with ETH trading comfortably above both $3,420 and the 100-hourly Simple Moving Average. This positioning suggests underlying strength in the current market dynamics.
A notable development in the price action is the formation of a bullish trend line, providing support near the $3,400 level. This trend line coincides with the 61.8% Fibonacci retracement level of the recent upward move from $3,289 to $3,545, adding technical significance to this support zone.
The immediate price action shows ETH encountering resistance near $3,485, with the $3,500 level representing the first major hurdle for bulls to overcome. Beyond this, the $3,550 level stands as a crucial resistance point that could determine the next directional move.
Market participants are closely monitoring the $3,650 level as a potential target should ETH successfully breach current resistance levels. A decisive move above this point could open the path toward $3,720 or possibly extend to the $3,880 region.
The downside scenario appears well-supported, with multiple technical levels providing potential bouncing points. The immediate support lies at $3,420, followed by the crucial $3,400 zone where the bullish trend line intersects.
Trading volume patterns indicate sustained interest from market participants, with buy-side pressure maintaining the current price levels despite periodic profit-taking activities.
Technical indicators paint a positive picture for ETH’s short-term prospects. The MACD (Moving Average Convergence Divergence) shows increasing momentum in the bullish zone, while the RSI (Relative Strength Index) remains positioned above the 50 mark.
Lower support levels at $3,350 and $3,285 provide additional safety nets should selling pressure intensify. The $3,220 level represents a final major support zone that bulls would likely defend vigorously.
Market order books show accumulation patterns at key support levels, suggesting institutional interest in maintaining ETH’s price stability above $3,400.
Recent trading sessions have demonstrated decreased volatility compared to previous weeks, potentially indicating a period of consolidation before the next major move.
The hourly chart patterns reveal a series of higher lows, typically considered a bullish market structure that could support further upward movement.
Current market data shows ETH maintaining healthy trading volumes across major exchanges, with spot market activity suggesting genuine demand rather than speculative trading.
