Ethereum (ETH) is attempting to regain its footing after a sharp sell-off that drove prices below $3,100 earlier this week. Despite a brief rebound, the second-largest cryptocurrency continues to face stiff resistance around the $3,500 mark, suggesting that buyers still have work to do before a sustained recovery can take hold.
Ethereum Attempts to Recover from Key Support Zone
Ethereum’s latest decline began after failing to hold the $3,550 level, mirroring Bitcoin’s weakness in recent days. The bearish pressure intensified, pushing ETH below the critical $3,450 and $3,350 support zones before bottoming near $3,050.
After forming a local low at $3,058, Ethereum began a modest recovery, rising past the $3,400 mark. The price briefly climbed above a bearish trend line at $3,410 on the hourly chart, signaling a potential short-term shift in momentum. However, despite these attempts, ETH remains capped below major resistance levels.
On the technical side, Ethereum is currently trading below both the $3,500 level and the 100-hourly Simple Moving Average (SMA), which suggests that the broader trend is still leaning bearish.
Key Resistance Cluster Near $3,500
According to recent technical analysis, Ethereum faces a dense resistance cluster between $3,450 and $3,550. This region aligns with the 50% Fibonacci retracement level of the drop from the $3,920 swing high to the $3,058 low, making it a crucial zone for bulls to reclaim.
A decisive move above $3,500 could pave the way for a stronger rally toward the $3,740 resistance level. Beyond that, a successful breakout above $3,800 could restore bullish sentiment, potentially setting the stage for a retest of the $4,000 psychological barrier.
However, if Ethereum fails to sustain momentum at current levels, the bearish outlook may persist, keeping ETH trapped in a consolidation range through the weekend.
Institutional Interest Remains, But Retail Caution Grows
While retail traders have become increasingly cautious amid the recent correction, institutional activity around Ethereum remains relatively steady. On-chain data shows that large investors continue to hold positions, reflecting long-term confidence in Ethereum’s fundamentals — particularly with growing optimism surrounding future ETF listings and staking yield products.
Analysts believe that if macroeconomic conditions stabilize and institutional inflows resume, Ethereum could quickly regain lost ground. But for now, traders appear to be waiting for stronger confirmation before re-entering the market in large volumes.
What Could Trigger the Next ETH Move?
Market analysts suggest that Ethereum’s next major move will depend on how it reacts around the $3,500 resistance. A successful close above this level could flip short-term sentiment bullish and encourage renewed accumulation.
On the downside, failure to break higher might result in renewed selling pressure. Immediate support lies near $3,320, followed by stronger demand zones around $3,260 and $3,150. A breakdown below $3,150 could expose Ethereum to further declines toward $3,050 or even $3,000.
If the $3,000 level fails to hold, it could mark a shift in sentiment from cautious optimism to outright bearishness, with traders anticipating deeper corrections toward $2,800.
Technical Indicators Show Mixed Signals
Ethereum’s short-term technical indicators reflect uncertainty. The hourly Relative Strength Index (RSI) remains near neutral territory, hovering around 50, suggesting neither buyers nor sellers have full control.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows that bearish momentum is slowing, hinting at a possible trend reversal if buying pressure increases near $3,300.
However, sustained volume remains low, indicating that traders are hesitant to commit ahead of a confirmed breakout or breakdown.
Market Outlook: Patience Required
Ethereum’s recovery remains fragile despite minor rebounds from local lows. The $3,500–$3,550 region is the key level to watch in the short term, as a breakout above it could trigger renewed bullish interest and open the door to higher targets like $3,740 and $3,800.
On the other hand, failure to clear resistance may lead to another dip toward the $3,100–$3,000 zone, where long-term investors could look to accumulate again.
For now, Ethereum traders are advised to remain patient and watch for confirmation signals. A strong daily close above $3,550 could mark the start of a more sustained recovery, while a move below $3,200 would suggest that sellers remain in control.
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