Key levels to watch as ETH trades near $3,600

TLDR

Ethereum is maintaining stability above $3,500 with strong support. Before minor correction, the high point was reached at $3,688. The bearish trend line shows resistance at $3,600. Technical indicators indicate the possibility of an upward movement.

Ethereum continued to show market strength this week, maintaining its position above the critical $3,500 level, laying a strong foundation for potential gains in the future. The second largest cryptocurrency by market capitalization has shown remarkable stability in recent trading sessions, outperforming Bitcoin in terms of price progress.

The digital asset recently hit a high of $3,688, indicating a significant recovery from its previous position. This upward move has now turned into support zones after Ethereum successfully breached several key resistance levels, including the $3,500 and $3,550 marks.

Market data from the Kraken exchange showed that after reaching the peak of $3,688, Ethereum underwent a small correction. The price experienced a slight decline below the $3,650 and $3,620 levels, although this retracement remained within the expected boundaries for healthy price action.

Technical analysis shows that the price has maintained its position above the $3,520 mark and the 100-hourly simple moving average, indicating strength in the current market structure. This position provides a stable basis for future price movements.

The market is currently facing an interesting challenge in the form of an associated bearish trend line that has set up resistance near the $3,600 level. This technical formation can be seen on the hourly chart of ETH/USD, which represents a key level that bulls need to overcome for further upward movement.

Looking at immediate price barriers, the $3,650 level emerges as the first major resistance point. Beyond this, traders are closely watching the $3,680 mark, which could be crucial in determining the next directional move.

A successful break above the $3,680 resistance could pave the way to the $3,750 level. If the momentum continues, market analysts suggest that Ethereum may test higher levels around $3,880 or reach the $3,920 mark.

However, the market shows defined support levels that can come in the event of downward pressure. An immediate support zone is located near $3,540, with a strong support level established at $3,500. This latter stage is of particular importance as it represents the psychological stage for traders.

If it goes lower, the price may find additional support at the 50% Fibonacci retracement level, which is calculated from the recent upward move that started at $3,254 and peaked at $3,688. This level, at $3,470, could provide a retracement point if tested.

The hourly MACD indicator remains in positive territory, suggesting a slight slowdown in bullish momentum. Meanwhile, the RSI (Relative Strength Index) holds a position above the 50 mark, which indicates balanced market conditions with a slight bullish bias.

Current market conditions indicate a clear trade-off between $3,500 and $3,650. This consolidation pattern typically precedes a directional move, when traders see a convincing break above or below these boundaries.

Trading volume patterns indicate sustained demand at current price levels, suggesting active participation from retail and institutional traders. Keeping price levels above key averages will further support the current market structure.

The recent price action followed a period of accumulation around the $3,250 zone, which served as a trigger for the current upside move. This level of base building has contributed to the stability seen in recent trading sessions.

Market data suggests that buying pressure will remain consistent above the $3,500 mark, with sellers looking more active around the $3,600 resistance zone. This variable has created the current consolidation pattern shown in the hourly time frame.

The most recent price data shows that Ethereum is trading at $3,580, maintaining its position in the established range, as market participants await the next directional move.