Key Insights:
- ETH failed at $3,143 resistance and is now testing the critical $3,049 support level.
- A break below $3,049 could send ETH toward the $2,944 to $2,928 support zone.
- Bulls need a move above $3,300 to regain higher timeframe trend control.
Ethereum reached $3,143 before facing strong selling pressure. This level lines up with the 100% Fibonacci extension, a common area for price exhaustion. After touching this zone, ETH moved lower and was trading near $3,105.
The move down comes after several days of upward price action. As of today, Ethereum was down just over 1% in the past 24 hours but remains about 6% higher over the past week. The current dip has not yet broken key support levels, but price is sitting close to a critical line.
$3,049 Is a Make-or-Break Support
ETH was testing the $3,049 area, which traders are watching closely. This level marks the 50% retracement from the recent move up. If this line holds, it could mean that the drop is just a short correction before another push higher.
Crypto Online commented,
“a break below $3,049 would indicate that a more substantial pullback is unfolding.”
The structure of the move appears to be a 3-leg correction, which is often seen in a wave 4 phase. If $3,049 breaks, ETH could head toward the lower support zone between $2,944 and $2,928.
$3,300 Must Be Reclaimed for Bulls to Gain Control
Ethereum continues to trade below its 200-day EMA, which currently sits near $3,357. The 200-day simple moving average is higher, around $3,599. These levels are commonly seen as long-term trend indicators.
Daan Crypto Trades noted,
“$3.3K is the key level to break for the bulls to get a high timeframe reversal going.”
So far, price has struggled to move past this region. Until a close above $3,300 is seen, Ethereum remains capped below a major resistance zone on higher timeframes.
Support at $2,600 Remains in Play if Breakdown Continues
Below levels, ETH has a major support zone near $2,633. This marks the November low and has acted as a floor several times over the last two months. If $3,049 gives way and price accelerates lower, this area could come back into focus.
A clean break under $2,600 would shift the broader market view and place ETH into a lower range. For now, the range between $2,600 and $3,300 continues to define the current structure. A move outside of this range is likely to guide the next trend.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.