TLDR
- ETH is consolidating near $3,120 after a downside correction below $3,150
- A contracting triangle pattern is forming with resistance at $3,120
- Key resistance levels are at $3,180 and $3,220
- Critical support levels exist at $3,040 and $2,980
- ETH needs to break above $3,320 for continued upward momentum
Ethereum’s price is currently navigating through a period of consolidation near the $3,120 level after experiencing a downward correction that pushed it below the $3,150 zone.
The second-largest cryptocurrency by market capitalization has shown mixed signals in recent trading sessions, with both bullish and bearish indicators present in the market.
The recent price action saw ETH testing lower levels, with bears managing to drive the price below several key support zones. The movement brought ETH to test the $3,000 support level, establishing a local low at $3,016. This price point has proven to be a crucial area of interest for traders and investors alike.
Technical analysis reveals the formation of a contracting triangle pattern on the hourly chart, with resistance established at $3,120.
This pattern often indicates a period of decreased volatility before a potential breakout in either direction. The price is currently trading below both the $3,200 level and the 100-hourly Simple Moving Average, suggesting short-term bearish pressure.
The market structure shows multiple resistance levels that bulls need to overcome for sustained upward momentum.
The first major resistance point sits at $3,180, which coincides with the 50% Fibonacci retracement level of the recent downward move from $3,340 to $3,016.
Looking at the upside potential, the $3,220 level represents a key barrier that bulls must clear. A successful breach above this level could open the path toward $3,320, which serves as a major resistance zone. If buyers can maintain momentum above $3,320, the next target would be the $3,450 area.
On the support side, the market has established several key levels that bears would need to break for further downside movement.
The immediate support lies at $3,060, followed by a more substantial support zone at $3,040. These levels have shown to be important areas where buyers have previously stepped in.
The Fibonacci retracement levels continue to play a crucial role in the current price action. The market has already recovered above the 23.6% retracement level of the recent downward move, indicating some buying pressure at lower levels.
If selling pressure intensifies and ETH fails to maintain support at $3,040, the next support levels to watch are $2,980 and $2,920. The $2,880 level serves as the final major support in the current structure before potentially deeper corrections.
The hourly chart indicators suggest that the market is in a period of decision-making, with both bulls and bears showing activity at current levels. The contracting triangle pattern indicates that a breakout might occur in the coming trading sessions.
Volume analysis shows moderate trading activity during the recent correction, though not at levels that would suggest a strong trend continuation. This could indicate that the current consolidation phase might continue before a clear direction emerges.
Short-term traders are closely monitoring the $3,120 resistance level, as a break above this point could trigger a move toward the higher resistance zones. The market has shown resilience at the $3,000 support level, which continues to hold despite selling pressure.
The recent price movement appears to be part of a larger consolidation pattern, with the market establishing a range between $3,000 and $3,320. Trading within this range has been characterized by shorter-term fluctuations and tests of both support and resistance levels.
The daily trading volume has remained relatively stable during this consolidation period, suggesting that major market participants are waiting for clearer signals before making substantial moves. This behavior is typical during triangle formation patterns.
The most recent trading sessions have shown decreased volatility compared to earlier periods, which often precedes a larger price move. The market continues to test the triangle pattern boundaries, with neither bulls nor bears gaining clear control.
The latest data shows ETH trading at $3,120, maintaining its position above the recent low while facing immediate resistance at the triangle pattern’s upper boundary.
The post ETH Price Analysis: Triangle Pattern Forms as Bulls Target $3,320 appeared first on Blockonomi.
