Bulls are defending critical support like $3,500 bacon

TLDR

Ethereum showed strong bullishness by breaching above $3,400 and maintaining support despite minor corrections. Support levels established at $3,500 and $3,550 with a potential move to $3,650 provide a safety net for current price levels.

The cryptocurrency market is witnessing renewed interest in Ethereum (ETH) as the second largest cryptocurrency by market capitalization holds a position above the $3,400 support level. Recent price action shows ETH consolidating below the $3,500 resistance mark and forming a series of high lows.

In recent trading sessions, Ethereum has shown remarkable resilience as Bitcoin made a corrective move, establishing strong support above $3,220, making a fresh upward move. As ETH successfully breached several key resistance levels, including $3,420 and $3,450, its upward momentum gained significant strength.

Bullish sentiment became more evident as ETH broke above the $3,500 barrier, reaching a local high of $3,545. Following this high, a minor correction occurred as the price retreated below $3,500 despite stability above key support zones.

Technical analysis shows a constructive market structure, with ETH comfortably above both $3,420 and the 100-hourly simple moving average. This position shows strength in the current market volatility.

A significant development in price action is the formation of a bullish trend line, providing support near the $3,400 level. This trend line corresponds to the 61.8% Fibonacci retracement level of the recent rise from $3,289 to $3,545, which adds technical significance to this support zone.

Immediate price action shows ETH facing resistance near $3,485, with the $3,500 level representing the first major hurdle for the bulls to overcome. Beyond this, the $3,550 level stands as a critical resistance point that could determine the next directional move.

If ETH successfully breaks the current resistance levels, market participants will closely monitor the $3,650 level. A critical move above this point could open the way to $3,720 or extend to the $3,880 range.

The downside looks well supported, with several technical levels providing trigger points. The immediate support is at $3,420, followed by the crucial $3,400 zone where the bullish trend line intersects.

Trading volume patterns indicate continued demand from market participants, buy-side pressure to maintain current price levels, and current profit-making activities.

Technical indicators paint a positive picture of ETH's short-term prospects. MACD (Moving Average Convergence Divergence) shows increasing momentum in the bullish zone, RSI (Relative Strength Index) remains above the 50 mark.

Lower support levels at $3,350 and $3,285 provide additional safety nets, should selling pressure intensify. The $3,220 level represents the last major support zone that the bulls can defend aggressively.

Market order books are showing accumulation patterns at key support levels, suggesting institutional interest in maintaining ETH's price stability above $3,400.

Recent trading sessions have seen reduced volatility compared to previous weeks, which may indicate a period of consolidation ahead of the next major move.

Hourly chart patterns show a series of high lows, typically considered a large market structure that could support further upside.

Current market data shows that ETH maintains healthy trading volumes on major exchanges, with spot market activity reflecting real demand rather than speculative trading.