Ethereum (ETH) is exhibiting significant structural strength, successfully maintaining its position above critical support levels despite facing firm resistance around the $3,400 price point. The cryptocurrency has held steady around the ~$3,275 support level, a zone that has proven crucial for sustaining the broader bullish narrative. This resilience, following a recent sweep of these lows, suggests underlying buyer control and improving market confidence.
Analysts highlight that Ethereum's ability to hold above what traders refer to as the "Bull Market Support Band" on daily charts is a positive technical signal. Furthermore, ETH has successfully reclaimed the 0.618 Fibonacci retracement level near $3,100, a key area watched during corrective phases. However, progress upward is not without struggle; the price recently faced rejection near the 0.5 Fibonacci level around $3,400, a traditional decision point that attracts selling pressure and causes temporary pullbacks.
The current market phase is characterized by consolidation. Traders are now closely watching for a potential breakout above the $3,330 resistance level, which could signal a shift in market structure and pave the way for a move toward the key monthly high of $3,400. This potential move is often anticipated to gain momentum after weekend trading, with liquidity sweeps expected early in the week.
Adding another layer of analysis, Ethereum's performance against Bitcoin (BTC) shows a gradual advance while respecting the daily 200-day moving average. This slow, methodical movement is interpreted by some as a sign of underlying strength, potentially setting the stage for a future acceleration phase that could renew interest across the altcoin market.
The constructive outlook remains conditional. For the bullish structure to stay valid, Ethereum must maintain its daily 200MA against Bitcoin, and Bitcoin itself needs to hold above the $94,000 level. A break below the $3,275 support for ETH could quickly shift the narrative, triggering a search for new bottoms and favoring short-term bearish movements. Traders are advised to await clear confirmation before making significant moves, as the market's push-and-pull dynamics continue.
