Ethereum (ETH) is currently holding within a tight range following its recent selloff and is showing resilience by holding above key support zones. However, the price remains firmly restrained by the downtrend line and structural resistance around the $3,400 level. Buyers are defending the key low of $2,905, but tendency It will remain sideways until ETH can break above the descending resistance and achieve a definitive close to begin the next big rally.
ETH tries to stabilize after crash
According to the daily newspaper update From CyrilXBT, Ethereum is trying to form a base following the recent decline, but the price is still capped below the 50-day EMA at around $3,281. This level will continue to act as a significant barrier, preventing ETH from confirming stronger levels. recovery For now.
At the time of the update, ETH was trading around $3,131. On the downside, initial support is around $3,050, but the broader demand zone between $2,750 and $2,900 remains the key area. buyer They are expected to intervene if selling pressure returns. On the upside, resistance is concentrated between $3,280 and $3,300, roughly in line with the 50-day EMA, which represents a clear “proving” level.
Looking ahead, a clean break and sustain above $3,300 could open the door for a return towards $3,500 and beyond territory. However, if we fail to recover this, resistance It is likely to lead to volatile price action, with the possibility of retesting the $3,000 level or even revisiting the $2,800 zone.
Ethereum trades below downtrend line resistance
Crypto analyst Camille Ouray revealed ETH is currently capped and persistently moving below the blue downtrend line. This trendline acts as an important diagonal resistance barrier and limits the range of ETH. bullish It rebounds and maintains short-term pressure to the downside.
Despite this overhead resistance, analysts identified important issues. support structure. Urai noted that as long as the price stays above the rising black trend line and the established low at $2,905, the possibility of a continuation of the uptrend remains valid. This confluence of support is critical to maintaining the market’s current bullish bias.
If the blue downtrendline resistance is decisively broken, we expect the subsequent rally to target a series of higher resistance levels: $3,661, then $3,878, and finally $4,292. Camille Ouray summed up the conditions for a breakout and said that if ETH manages to achieve a daily close above the $3,400 level, the downtrend line will almost break. On the other hand, the key conditions for expecting continued upside are a close above $3,400 and the price successfully avoiding a close below the key low of $2,905.
Featured image from Getty Images, chart from Tradingview.com