Ethereum has found strong support around the $3,400 mark and is recovering, opening up expectations to soon reach the $3,800 price range in the short term.

Recent Developments

After reaching a peak near $3,880, ETH faced correction pressure similar to Bitcoin. The price quickly fell below $3,750 and $3,500, even breaching the $3,400 level and the 100-hour SMA at one point. This decline ended when ETH found strong support at $3,365.

From here, the buyers began a strong counterattack:

  • The price has bounced above $3,450 and $3,500.

  • Surpassing the 50% Fibonacci level of the decline from the peak of $3,877 to the bottom of $3,369.

  • Currently, ETH is trading steadily above $3,550 and the 100-hour SMA, while forming an important upward trend line with support around $3,620 on the hourly chart.

Key Resistance Levels

In the short term, ETH is facing nearby resistance:

  • $3,720 – the first resistance.

  • $3,750 – coinciding with the 76.4% Fibonacci level of the most recent decline.

  • $3,800 – a strong resistance level that could pave the way for a new rally.

If the price decisively breaks $3,800, the next target will be:

  • $3,880 – the nearest peak.

  • $4,000 and further $4,120 – a strong psychological resistance zone.

Correction Scenario

In the event that ETH cannot surpass $3,750 – $3,800, the market may witness a short-term correction. Support levels to watch:

  • $3,620 – the nearest support.

  • $3,600 – an important support, if broken could pull the price down to $3,550.

  • $3,500 and $3,450 – deeper support levels.

Technical Signals

  • MACD (1H timeframe): Continuing to expand in positive territory, indicating buying pressure remains dominant.

  • RSI (1H timeframe): Maintaining above 50, supporting a short-term upward trend.

Summary

Ethereum is in a good recovery phase after a sharp decline, provided it maintains above $3,600 and breaks through $3,800. If successful, ETH could potentially return to the $3,880 level and aim for $4,000 – $4,120 in the upcoming sessions.