In the last trading session, the price of Ethereum found significant support at the $3,400 level, and recorded a good recovery. However, this rise was not enough to help Ethereum surpass the key resistance level between $3,700 and $3,750, leaving the risk of a downward correction intact.
Recent price movements
The price of ETH recovered from its low of $3,365 after strong selling pressures, surpassing short-term resistance levels at $3,440 and $3,500.
The price broke the 50% Fibonacci level of the drop from the high of $3,877 to the low of $3,369, while also touching the $3,700 area.
However, at the $3,750 area (corresponding to the 61.8% Fibonacci level), selling pressure returned strongly, pushing the price back below $3,600.
It is worth noting that on the H1 chart, ETH broke the upward trend line at $3,620 and is currently trading below the 100-hour simple moving average.
Important support and resistance levels
Near resistance: $3,620 - this is the level ETH needs to overcome to regain the short-term upward trend.
Strong resistance: $3,700 - $3,750. If the price exceeds $3,820, and even $4,000 - $4,120.
Nearby support: $3,550 - maintaining this area will help ETH keep its recovery chances.
Strong support: $3,510 and $3,420. If it breaks $3,510, the price may retreat to $3,350 or even $3,220 due to selling pressure.
Technical indicators
MACD (H1): Expanding in the negative zone, indicating that bearish momentum is still dominant.
Relative Strength Index (H1): Below 50, reflecting that selling pressures are still present.
Short-term trend: Tends to a downward correction if it fails to break the $3,620 level quickly.
Short-term scenario
Bullish scenario: If Ethereum holds above $3,550 and successfully breaks above $3,620, buying momentum could push the price to a level between $3,700 and $3,750. Exceeding $3,750 would open the way to a range between $3,820 and $4,000.
Bearish scenario: If the level of $3,510 is broken, the price of ETH is likely to slide to $3,420 and deepen further to $3,350 - $3,220.
