Ethereum (ETH) Price Holds Major Uptrend Support Near $2.8K, Might Attempt to Surpass Key Hurdles

Earlier this month, Ethereum saw a major decline below the $3,400 and $3,265 support levels. The price declined over 15% and even traded below $3,000

After a significant drop earlier this month, Ethereum (ETH) encountered strong buying pressure near the $2,800 level, leading to a recent recovery. Notably, ETH is outperforming Bitcoin in terms of price action, with a possibility of attempting to cross key hurdles.

CoinChapter provides a concise analysis of ETH’s price movements and crucial resistance levels.

ETH Price Holds Major Uptrend Support

Earlier in December, ETH slid below crucial support at $3,400 and $3,265, respectively. The price dropped by over 15%, trading even below $3,000 as BTC slid below $60,000. However, the bulls managed to step in at the key uptrend support around the $2,800 zone.

The low was seen at $2,815 as it seems like the bulls defended the key support once again around the $2,800 zone. Now, ETH is recovering from the losses above the resistance at $3,000. It cleared the 23.6% Fib retracement level of the downward move from the $3,975 swing high to the $2,815 low.

Now, ETH is trading well below the 50-day simple moving average (blue). If there is more upside, the price could face resistance near the $3,200 level.

The first major resistance is seen near the $3,280 zone. There is also a connecting bearish trend line forming with resistance at $3,265 on the daily chart. Next, up is the 50% Fib retracement level of the downward move from the $3,975 swing high to the $2,815 low at $3,400.

A clear move above the trend line resistance and then $3,400 might call for a move to $3,500 and the 50-day simple moving average (blue). If ETH bulls push the price above the $3,500 resistance, we could see a fresh rally.

In the stated case, the price could rise toward the $3,700 level. Any more gains might call for a move toward the $4,000 zone in the near term.

More Downsides In ETH?

On the downside, ETH might struggle to rise above the $3,265 and $3,400 resistance levels. In the stated case, it could resume its slide. The first major support is seen near the $2,950 level. Now, the main uptrend support is forming around the $2,800 zone.

If there is a daily close below the $2,800 support zone, there is a risk of a larger pullback. In the stated case, the price might test the $2,550 level. Next, up is the major support at $2,420. Any more losses might lead ETH toward the $2,150 support.

Overall, ETH price managed to stay above $2,800 and recovered above $3,000. However, ETH bulls need to clear the $3,265 and $3,400 hurdles to start a fresh uptrend.

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