In recent trading sessions, Ethereum's price found important support around $3,400 and recorded a decent recovery. However, the upward momentum is not strong enough to help ETH break through the key resistance area of $3,700 – $3,750, leaving the risk of a downward adjustment still present.

Recent Price Movements

  • ETH recovered from the low of $3,365 after strong selling pressure, surpassing the short-term resistance levels of $3,440 and $3,500.

  • The price has broken through the 50% Fib level of the decline from the peak of $3,877 to the low of $3,369, while also touching the area of $3,700.

  • However, at the level of $3,750 (corresponding to the 61.8% Fib level), selling pressure returned strongly, pushing the price back down below $3,600.

  • Notably, on the H1 timeframe, ETH has broken the upward trendline at $3,620 and is currently trading below the 100-hour SMA.

Important Resistance and Support Levels

  • Near resistance: $3,620 – This is the level ETH needs to surpass to restore the short-term bullish trend.

  • Strong resistance: $3,700 – $3,750. If broken, the price could head towards $3,820 and even $4,000 – $4,120.

  • Near support: $3,550 – Holding this area will help ETH maintain recovery opportunities.

  • Strong support: $3,510 and $3,420. If it breaks below $3,510, selling pressure could pull the price down to $3,350 or even $3,220.

Technical Indicators

  • MACD (H1): Expanding in the negative zone, indicating that the bearish momentum still prevails.

  • RSI (H1): Below the threshold of 50, reflecting ongoing selling pressure.

  • Short-term trend: Tilted towards a bearish adjustment if it does not quickly break back above $3,620.

Short-Term Scenario

  1. Bullish scenario: If ETH holds above $3,550 and successfully breaks through $3,620, buying momentum may push the price to challenge $3,700 – $3,750. Breaking above $3,750 will pave the way to $3,820 – $4,000.

  2. Bearish scenario: If it breaks below $3,510, there is a high chance ETH will slide to $3,420 and further down to $3,350 – $3,220.