Ethereum (ETH) is showing strength following the $3,441 peak
TLDR
ETH recently hit $3,441 before a correction.Currently consolidating above the $3,100 support level, technical indicators show that the price will remain above the moving average, indicating continued bullish momentum. 80 high support achieved.
Ethereum, the second-largest by market capitalization, continues to show resilience after a recent price correction, showing support above $3,100.
The digital asset It peaked here on November 12, marking a significant breakthrough in recent price action. However, market volatility led to a natural reversal as the cryptocurrency entered overbought territory near the $3,400 resistance zone.
Trading data indicates that Ethereum's price action has entered a consolidation phase above the crucial $3,100 support level. This stability at higher levels indicates strength in the market as buyers continue to defend this important price point.
Technical analysis shows that the moving average lines have risen above their previous horizontal position, indicating a broader bullish trend structure. The price consistently trading above these moving averages provides further confirmation of positive market sentiment.
In the four-hour time frame, Ethereum's price action shows a more subdued picture. The cryptocurrency is currently hovering between key moving averages, suggesting price discovery time as traders assess the next directional move.
Market observers note that the support at $3,100 marks a critical moment for Ethereum's price action. A sustained break above this level could set up another attempt to break the $3,400 support zone.
Hourly price data shows that a bearish trend line has formed near $3,185, an immediate challenge for bulls looking to push prices higher. However, as long as prices do not exceed the psychological level of $3,000, the overall market structure remains constructive.
Trading volumes have remained stable during this period of consolidation, reflecting active market participation and healthy liquidity conditions. This situation usually contributes to stable price action and reduces the likelihood of sudden and volatile movements.
Looking at key support levels, the $3,040 zone represents the first line of defense below current prices. If the selling pressure strengthens, the market has established additional support zones at $2,950 and $2,880, although the current price action shows limited risk exposure.
An upside scenario shows several important defensive levels that traders can monitor. Beyond the $3,200 immediate resistance, successful breaks above $3,265 and $3,320 could pave the way for a test of the recent $3,441 high.
Technical indicators give mixed signals in the short term. The hourly MACD is trending lower while the RSI remains below the 50 mark, suggesting potential upside.
The price bars of the daily chart occupy a position above the key moving averages, providing a clearer and brighter picture. This long-term view supports the case for continued upward momentum, pending any major market disruption.
Traders have noticed the formation of high lows on multiple time frames, a classic market structure that usually precedes an upward move. This pattern suggests that buyers remain active at gradually higher price levels.
Market participants are closely watching the $3,400 level, as a critical break above this resistance could rekindle buying interest. Some analysts project potential targets at $3,800 and $4,100 if this breakout materializes.
On the downside, a break below the current support at $3,100 could lead to a challenge of the 21-day simple moving average or the $2,800 support level. However, current market conditions suggest some appetite for sustained sales pressure.
