Ethereum (ETH) is currently consolidating within a tight range following the recent sell-off, showing resilience by remaining above key support zones. However, the price remains firmly contained by a descending trendline and structural resistance around the $3,400 level. While buyers defend the crucial low of $2,905, the trend remains sideways until ETH can achieve a decisive close above falling resistance to initiate the next major rally.
ETH is trying to stabilize after the sell-off
According to a newspaper update from CyrilXBT, Ethereum is trying to form a base after the recent sell-off, but the price remains contained below the 50-day EMA around $3,281. This level continues to pose a significant barrier, preventing ETH from confirming a stronger value recovery for now.
Related reading
At the time of the update, ETH was trading around $3,131. On the downside, initial support is around $3,050, while a broader demand zone between $2,750 and $2,900 remains the key area where buyers They are expected to intervene if selling pressure returns. On the upside, resistance is concentrated between $3,280 and $3,300, which is closely aligned with the 50-day EMA, which represents a clear ‘prove-it’ level.
Looking ahead, a clear break and continued hold above $3,300 could open the door for a move back towards the $3,500 area and beyond. However, it is not possible to reclaim this resistance would likely lead to choppy price action, with a possible retest of the $3,000 level and even a visit to the $2,800 zone.
Ethereum is trading below the falling trendline resistance
Crypto analyst Kamile Uray revealed that ETH is currently limited and continuously moving below a blue descending trend line. This trendline acts as a significant diagonal resistance barrier, limiting the size of ETHs optimistic bounces and keeps the short-term pressure tilted downward.
Related reading
Despite this resistance from above, the analyst identified a critical point support structure. Uray noted that the possibility of the upward move continuing remains valid as long as the price remains above the rising black trendline and above the low of $2,905. This convergence of support is critical to maintaining the market’s current bullish bias.
If the blue descending trendline resistance is finally broken, the ensuing rally is expected to target a series of higher resistance levels: $3,661, then $3,878, and finally $4,292. Kamile Uray synthesized the condition for the breakout and stated that the descending trendline will be approximately broken if ETH manages to achieve a daily close above the $3,400 level. Meanwhile, the key to expecting sustained upside is a close above $3,400, combined with a price successfully avoiding a close below the critical low of $2,905.
Featured image from Getty Images, chart from Tradingview.com