A triangle pattern formed as a bullish target at $3,320

TLDR

ETH is consolidating towards $3,120 after a minor correction below $3,150.

Ethereum price is currently going through a period of consolidation after experiencing a correction below $3,120.

The second largest cryptocurrency by market capitalization has shown mixed signals in recent trading sessions, with both bullish and bearish indicators in the market.

The recent price action has seen ETH test lower levels, with bears managing to drive the price below several key support zones. The move brought ETH to test the $3,000 support level, which is in the vicinity of the low at $3,016. This price point has proven to be a critical area of ​​interest to traders and investors.

Technical analysis shows the formation of a contracting triangle pattern on the hourly chart, with resistance established at $3,120.

This pattern usually shows a bearish period before a potential breakout in either direction. The price is currently trading below both the $3,200 level and the 100-hourly simple moving average, indicating short-term bearish pressure.

The market structure shows several resistance levels that bulls will need to push higher for the duration.

The first high resistance point is set at $3,180, which corresponds to the 50% Fibonacci retracement level from $3,340 to $3,016.

Looking at upside potential, the $3,220 level represents a key barrier that bulls need to clear. A successful breach above this level could pave the way to $3,320, which serves as a major resistance zone. If buyers can maintain momentum above $3,320, the next target will be around $3,450.

On the support side, the market has established several key levels that need to be broken for further downward movement.

The immediate support is at $3,060, followed by a more important support zone at $3,040. These levels have previously shown to be important areas for buyers to enter.

Fibonacci retracement levels continue to play an important role in the current price action. The market has bounced back above the 23.6% retracement level from the recent downtrend, indicating some buying pressure at lower levels.

If selling pressure intensifies and ETH fails to maintain support at $3,040, the next support levels are $2,980 and $2,920. The $2,880 level will serve as the last major support before further corrections are made within the current structure.

Hourly chart indicators suggest that the market is in a decision-making period, with both bulls and bears showing activity at current levels. The contract triangle pattern indicates the possibility of a breakdown in the upcoming trading sessions.

Volume analysis shows moderate trading activity during the recent correction, although not at levels that indicate a strong trend. This may indicate that the current level of consolidation may continue before a clear direction emerges.

Short-term traders will keep a close eye on the $3,120 resistance level, as a break above this point could trigger a move into higher resistance zones. The market has shown resistance at the $3,000 support level, which will continue despite the selling pressure.

Recent price action appears to be part of a larger consolidation pattern, with the market establishing a range between $3,000 and $3,320. Trading in this range is characterized by short-term fluctuations and tests of both support and resistance levels.

During this period of consolidation, daily trading volume remained relatively stable, suggesting that major market participants were waiting for clear signals before making concrete moves. This feature is common when forming a triangle.

The most recent trading sessions have seen reduced volatility compared to previous sessions, which often precede large price movements. The market continues to test the boundaries of the triangle pattern, neither the bulls nor the bears find clear control.

The latest data shows ETH trading at $3,120, maintaining a position above the recent low while facing immediate resistance at the upper border of the triangle pattern.