Ethereum (ETH) Price Reaches Inflection Zone, Key Takeaways

NEW DELHI (CoinChapter.com) — Ethereum (ETH) corrected gains and declined below $3,400. ETH could attempt another increase unless there is a close below $3,200.

Ethereum (ETH) price declined below $3,400 after failing to sustain gains from the previous session. The world’s second-largest cryptocurrency attempted to extend its recovery from a recent low of $2,815, but the bulls faced strong selling pressure at higher levels.

ETH price now trades at a critical juncture and risks another sharp decline if it fails to close above crucial support.

Ethereum Price Analysis

ETH price attempted a strong recovery rally in the past few sessions. The bulls pushed the price above the $3,200, $3,220, and $3,350 resistance levels. Moreover, they also formed a bullish engulfing candle on the hourly chart.

However, the bulls failed to gain bullish momentum above the $3,350 and $3,400 resistance levels. As a result, the price declined sharply from a high of $3,420. On a lower time frame, it seems like ETH price is following a rising channel.

The price traded below the 23.6% Fib retracement level of the upward move from the $2,815 swing low to the $3,566 high. More importantly, Ethereum is still below the 50-day simple moving average (blue) and is facing heavy resistance.

On the upside, the first major resistance is near the $3,400 level. The next resistance is near the $3,550 level. A clear move above the $3,550 level could open the doors for a move toward the $3,700 level. If ETH bulls push the price above the $3,700 resistance, there could be a steady increase.

In the stated case, the price could rise toward the $3,880 level. Any more gains might initiate a move toward the $4,000 zone in the near term.

Looking at the downside, any failure of the price to settle above the 50-day simple moving average (blue) or $3,400 might lead to immediate support near the $3,220 level. The first major support sits near the channel’s trend line at $3,185. The next major support sits at $3,100.

A daily close below the $3,100 level might send ETH toward the $3,000 handle. The main uptrend support is now near the $2,820 region (a multi-touch zone). A clear downside break and close below the $2,820 support zone could spark a larger decline. The next major support is near the $2,620 level. Any more losses might send Ether toward the $2,500 support.

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