Ethereum (ETH) is once again showing signs of weakness after failing to sustain its momentum above the $3,550 level. Following a short-lived rebound, the world’s second-largest cryptocurrency has slipped below key technical levels, raising concerns about further downside pressure if support at $3,350 gives way.
Ethereum Faces Renewed Selling Pressure
After attempting to extend its recovery beyond $3,650, Ethereum encountered stiff resistance and quickly reversed course. Similar to Bitcoin’s recent consolidation phase, ETH failed to maintain bullish momentum and entered a fresh corrective trend.
The decline gathered pace as Ethereum broke below $3,550 and later the $3,500 mark, both of which had served as short-term support levels. The drop also pushed ETH beneath the 50% Fibonacci retracement level of the prior upward move from the $3,176 swing low to the $3,658 high — a signal that the bullish leg has weakened.
At press time, Ethereum trades near $3,470, slightly below the 100-hourly Simple Moving Average (SMA). Market indicators show mixed sentiment, with traders closely watching whether bulls can defend the critical support zone around $3,350.
Technical Structure Turns Cautious
The hourly chart reveals a bearish trend line forming with resistance near $3,550. This trend line continues to limit Ethereum’s recovery attempts. For any meaningful upside move to occur, ETH must close decisively above this resistance level.
If buyers succeed in pushing the price above $3,550, it could pave the way for another test of the $3,650 resistance zone. A confirmed breakout beyond that point might allow ETH to target $3,800 and potentially the $3,880 resistance area — regions that previously acted as profit-taking levels for traders.
However, analysts caution that unless Ethereum manages to close above $3,550 with strong trading volume, the path of least resistance remains to the downside.
Short-Term Support Levels to Watch
In the event of further weakness, Ethereum’s immediate support lies around $3,400, followed by a stronger base near $3,360, which aligns with the 61.8% Fibonacci retracement level from the previous rally. A clean break below this level could accelerate selling pressure, potentially dragging ETH toward $3,280 or even lower.
Should bearish momentum persist, deeper targets include the $3,240 and $3,200 support zones. Both have historically served as reversal points during market corrections, making them important levels for traders to monitor.
Market Sentiment Remains Uncertain
Ethereum’s recent struggle comes amid mixed conditions across the broader cryptocurrency market. While Bitcoin remains steady above $108,000, its slowing momentum has weighed on altcoins, including ETH.
Traders remain cautious as Ethereum’s recent price behavior suggests hesitation among both buyers and sellers. The relative strength index (RSI) on the hourly chart sits near neutral territory, indicating a lack of clear directional conviction.
“Ethereum has failed to maintain its breakout structure above $3,550, and that keeps short-term sentiment defensive,” one market analyst noted. “As long as the $3,350 zone holds, we could still see recovery attempts — but a break below that could trigger sharper declines.”
Key Resistance and Recovery Potential
For Ethereum to regain positive momentum, it must first reclaim the $3,500 level. From there, the next hurdles are set around $3,550 and $3,650. A successful close above these zones could restore bullish sentiment and invite renewed buying interest from traders anticipating a move toward $3,800 or higher.
In the best-case scenario, breaking $3,650 might open the door to the $3,800–$3,880 zone, where ETH could face heavy resistance but also attract momentum-driven buyers seeking continuation.
Until that happens, though, Ethereum’s outlook remains neutral to bearish in the short term.
Broader Outlook: Caution Dominates
Despite the short-term weakness, Ethereum’s long-term fundamentals remain strong. The network continues to dominate the decentralized finance (DeFi) and non-fungible token (NFT) sectors, and recent upgrades to enhance scalability and transaction efficiency have been positively received by developers.
Still, macroeconomic factors and overall market sentiment are weighing on the crypto market. Investors remain sensitive to inflation data, regulatory developments, and the performance of Bitcoin, all of which tend to influence Ethereum’s near-term trajectory.
If Bitcoin resumes its uptrend, Ethereum could benefit from renewed capital inflows. However, if BTC remains range-bound or dips below its key supports, Ethereum could face additional selling pressure, possibly pushing it closer to $3,200 in the coming sessions.
Conclusion: Bulls Must Defend $3,350 to Avoid Deeper Losses
Ethereum’s price is now at a critical juncture. The $3,350 support level will likely determine whether ETH stabilizes for another rebound or slides into a deeper correction. As long as bulls can defend this zone, a recovery toward $3,550 and $3,650 remains possible.
However, a decisive break below $3,350 could shift control back to bears, potentially dragging the price toward $3,280 or even $3,200.
For now, Ethereum traders are advised to remain cautious and watch for a confirmed breakout above $3,550 — the signal that could mark the start of a fresh bullish phase.
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