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ETH Price Analysis: Can Ethereum Bounce Back or Head Toward $3,220?
Ethereum’s price action has captured traders’ attention this week, as the leading smart contract platform slips below key support levels and tests its short-term resilience. After failing to hold above $3,620, ETH now hovers around $3,360, leaving investors and traders wondering whether buyers will defend this zone or if further declines loom.
Ethereum’s Pullback: Failed Recovery Attempts
Following an earlier recovery attempt, Ethereum initially moved above the $3,400 and $3,550 thresholds, mirroring a similar rally in Bitcoin. ETH managed to surpass the $3,600 resistance, even briefly touching a high of $3,658. However, the momentum did not hold.
After forming this local high, Ethereum’s price reversed, slipping below $3,550. The break below the bullish trend line at $3,575 intensified the selling pressure, signaling caution for short-term traders. Compounding this, ETH is currently trading under the 100-hourly Simple Moving Average (SMA), a technical indicator widely regarded as a bearish signal in the near term.
The 50% Fibonacci retracement of the upward swing from $3,178 to $3,658 has become a crucial level for traders to watch, acting as a potential reversal point if buyers step back in.
Resistance Levels: Can ETH Reclaim Lost Ground?
Ethereum faces immediate resistance at $3,550, a level that could determine whether a recovery is possible. A successful breakout above $3,550 may open the door for ETH to retest $3,620 and $3,650, with the next notable resistance zones sitting around $3,800 and potentially $3,880.
Traders will likely monitor how ETH reacts around these levels, as reclaiming them could signal renewed bullish sentiment and a chance for further upward momentum.
Support Levels: The Crucial $3,360 Zone
On the downside, Ethereum’s initial support sits at $3,420. A breach of this level could push ETH down to the $3,360 support zone, which aligns closely with the 61.8% Fibonacci retracement of the recent swing from $3,178 to $3,658. This makes it a critical level for maintaining the current price structure.
If buyers fail to defend $3,360, Ethereum could experience further declines toward $3,290 or even $3,220. Extended weakness might push ETH to retest lows around $3,175 and $3,150, intensifying the bearish sentiment in the short term.
What’s Next for Ethereum?
Ethereum’s next move largely hinges on whether the $3,360 support zone holds. If this level withstands selling pressure, ETH may attempt another bounce and aim to reclaim higher resistance points. Conversely, a decisive break below $3,360 could open the door to deeper declines, testing investor confidence and market sentiment.
Traders are carefully watching how buyers and sellers react in the coming sessions. A sustained defense at $3,360 could encourage renewed accumulation, while failure to hold may trigger a sharper pullback toward lower Fibonacci levels and psychological price points.
Short-Term Outlook: Caution Amid Uncertainty
Market watchers note that Ethereum is navigating a delicate balance between bullish recovery attempts and short-term selling pressure. With the 100-hourly SMA acting as a bearish signal and resistance levels proving challenging to reclaim, the coming days are likely to be decisive.
Investors and traders will need to track Ethereum’s support and resistance zones closely, particularly around $3,360 and $3,550, to gauge whether the market can sustain upward momentum or if further downside action is imminent.
For now, Ethereum remains in a critical phase, with short-term traders eyeing potential reversal points and long-term participants assessing whether ETH can regain its footing after the recent pullback.
