Ethereum (ETH) is currently facing a critical test as it approaches the key support level of $3,360. This price level has emerged as an important marker over the past few trading sessions, with market participants Watch closely to see if ETH can hold its ground or if further declines are imminent.
The $3,360 level represents a crucial battleground between bullish and bearish forces, and its outcome could set the tone for Ethereum’s short-term price trajectory. In this article, we will explore the potential implications of ETH’s price in the event of a rejection or breakout using technical indicators.
At the time of writing, Ethereum was trading at around $3,387 and was down 1.62% with a market cap of over $407 billion and a 24-hour trading volume of over $11 billion. Its market cap is down 1.52%, while its trading volume has increased by 32.02% over the past day.
Will the $3,360 support hold or break?
On the 4-hour chart, we can observe that the price of ETH has dropped to $3,360 and is trading below the 100-day simple moving average (SMA). Currently, the price is moving in a consolidating manner, slightly above this level.
Additionally, the 4-hour relative strength index (RSI) indicates that The price of Ethereum could break this support level and continue its downward trend since the RSI line has fallen below 50% and could fall into the oversold zone.
Looking at the 1-day chart, we can see that ETH is trying to break below the 100-day moving average. Although the price of ETH is still bullish, based on the current price action, it could be trending lower in the long term.
Finally, the 1-day RSI indicator signals an upcoming bearish trend as the signal line has already fallen below 50% and is heading towards the oversold zone. From the price analysis and technical indicator formation, it can be suggested that the crypto asset could likely fall below the $3,360 support.
Ethereum’s Path Beyond $3,360
Exploring the outlook and strategies for ETH beyond $3,360, it was revealed that if the price of ETH breaking below this level, it could drop to test the $3,051 support level and likely move to the $2,865 support level and further levels below if the price breaks above this level.
However, if ETH price is rejected at the $3,360 support level, it will start to rise. towards the $3,659 resistance level. If the digital asset breaks through this support level, it may move further to test the $3,975 resistance level and possibly other higher levels.
Featured image from Adobe Stock, chart from Tradingview.com
