Ethereum is trading near key technical levels, raising questions about the strength of the current trend. At the time of writing, the price was $3,130, down 11% in the past 24 hours and 4% over the past week.
Analysts are monitoring this zone to assess whether the asset can maintain support or continue its decline.
Weekly 50EMA retest attracts attention
ETH is currently testing the weekly 50 EMA, which has been acting as resistance for over a year. This zone, the approximately $3,200 to $3,500 area, is now being retested from the other side. Merlijn trader described the setup as follows:Succeed or break?” he said:
“If we lose this…we lose momentum. Hold it…and we send out.”
Holding this support will keep Ethereum within the broader trend structure. If this level breaks, sellers may regain control and the price may fall towards the next support zone.
Ethereum’s strength against Bitcoin is also being monitored after retaking the ETH/BTC pair’s 50-week EMA. In earlier cycles, including 2021, this development occurred just before ETH started its big rally.
Additionally, Ethereum is trading in a narrow range between $3,350 and $3,675 on the daily chart. It is currently stuck between the 200-day moving average near $3,590 and the 200-day moving average near $3,355. This range has been respected over multiple sessions with no clear breakouts in either direction.
Daan Crypto TradesShould lead to another 5%+ move“However, he added that only a clean break, rather than a short-term wick, would confirm the direction. Until a clear move occurs, ETH will remain boxed between these two long-term moving averages.”
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Double bottom structure near the key support
GalaxyBTC pointed out that Ethereum may be forming a double bottom around $3,100 to $3,200. This setting was made after an adjustment of approximately 36% and reflects the structure seen in 2020. At that time, ETH rebounded from a similar double-dip and began a strong rally.
“A pullback here means the 2020 pattern is still in play,” GalaxyBTC wrote.
If this cannot be sustained, the pattern may be canceled and expectations may shift to the downside. Prices have recently risen from the ATH to just over $3,100, matching the size of previous declines.
Weak daily closing prices and exchange withdrawals
CryptoWZRD noted that Ethereum ended the day on a bearish note and warned that further declines are possible. ETHBTC is approaching support levels. They added:A strong bullish reversal is neededOtherwise, ETH could continue to be under pressure. If prices fail to recover, a drop to $2,800 is still on the table.
Short-term support is located near $3,230, while resistance is seen near $3,640. Unless Bitcoin moves stronger, Ethereum could remain within this range or trade lower.
Meanwhile, data shows that large ETH wallets are withdrawing funds from Binance. This reduced the supply of available replacements. Analysts suggest that this could be a sign of long-term positioning, as there are fewer coins available for sale.
