TLDR
- Ethereum price dropped below $3,550 after failing to stay above $3,620.
- $3,360 support level is critical for Ethereum to avoid further declines.
- Ethereum could test lower levels if it fails to hold the $3,360 support.
- Bulls may step in at $3,360 support to push the Ethereum price higher again.
Ethereum’s price has recently experienced a notable pullback, moving below the $3,550 support zone. After failing to hold above the $3,620 mark, ETH is now testing a critical support level at $3,360. The question remains: will buyers step in to defend this zone, or will the price face further declines?
Ethereum Price Decline After Failed Recovery
Ethereum began its recovery attempt after moving above the $3,400 and $3,550 levels, much like Bitcoin. ETH managed to rise above the $3,600 resistance but faced resistance around the $3,650 level. After forming a high at $3,658, Ethereum’s price started to reverse and declined below the $3,550 mark. A break below the bullish trend line at $3,575 further fueled the downward pressure.
Currently, Ethereum is trading below the 100-hourly Simple Moving Average (SMA), which is seen as a bearish signal in the short term. Ethereum’s price recently tested the 50% Fibonacci retracement level of the upward move from the $3,178 swing low to the $3,658 high. This level has become a point of interest for traders as a potential reversal zone.
Resistance and Support Levels for Ethereum
The key resistance for Ethereum in the near term is at the $3,550 level. A successful break above this resistance could allow the price to test higher levels, including the $3,620 and $3,650 zones. If Ethereum manages to surpass $3,650, the next resistance levels to watch are around $3,800 and potentially $3,880.
On the downside, Ethereum faces initial support at $3,420. A decline below this level could bring Ethereum to the $3,360 support area, which is critical for maintaining the current price structure. The 61.8% Fibonacci retracement level of the upward move from $3,178 to $3,658 aligns with this support zone, making it an important level to monitor.
What’s Next for Ethereum?
Ethereum’s price could either attempt another recovery or face further downside pressure. If Ethereum fails to reclaim the $3,550 resistance level, a move toward the $3,360 support zone seems likely. If ETH breaches this key support, the price could fall further toward $3,290 or even $3,220. Further declines may bring the price to test the $3,175 and $3,150 levels.
The current market action will depend on whether buyers defend the $3,360 support zone. If this level holds, Ethereum may see a bounce and attempt a recovery back toward higher resistance levels. However, a break below this support would open the door for more declines.
Outlook for Ethereum in the Coming Days
Traders and investors are closely watching the $3,360 support level. If Ethereum manages to stay above this level, there is a chance for another attempt to push higher. However, if the market continues to show weakness, Ethereum may struggle to regain lost ground. The next few days could determine whether Ethereum can defend key support and resume its upward trajectory or face further declines.
