Ethereum (ETHUSD) is currently facing a crucial test as it struggles to break through the supply zone between $4,300 and $4,340. After a strong rally, the price has shown early signs of bearish pressure, indicating that sellers are defending this key resistance area.
Key Levels to Watch
- *Supply Zone (Resistance):* $4,300 – $4,340
- *First Support:* $4,177
- *Demand Zone:* $4,072 – $4,005
Analysis
The price's inability to breach the supply zone suggests that bears are firmly in control at these levels. If the rejection holds, we could see a retracement toward $4,177. A confirmed break below this level could open the door to further declines, potentially targeting the demand zone around $4,072 – $4,005.
Scenarios to Consider
- *Bearish Scenario:* Entry on confirmed rejection from the supply zone, with targets at $4,177 and $4,072. Stop loss above $4,345.
- *Bullish Scenario:* If the price breaks and sustains above $4,345, buyers could push for higher highs beyond $4,400.
Market Outlook
Given the current price action, the short-term bias remains bearish unless Ethereum sees a clean breakout above $4,345. As the market navigates this critical juncture, traders should closely monitor key levels and adjust their strategies accordingly.
*Current Price:* Ethereum is currently trading at $4,218.78, with a 0.66% increase in the last 24 hours ¹.
