Ethereum (ETH) is currently facing a critical test as it approaches the key support level at $3,360. This price point has emerged as an important marker in recent trading sessions, with… Market participants We are watching closely to see if ETH is able to maintain its position or if further declines are imminent.
The $3,360 level represents a crucial battleground between bulls and bears, and its outcome could set the tone for Ethereum’s price trajectory in the short term. In this article, we will explore the potential impacts on Ethereum price in case of rejection or breakout with the help of technical indicators.
At the time of writing, Ethereum is trading at around $3,387 and down 1.62% with a market cap of over $407 billion and a 24-hour trading volume of over $11 billion. Its market value decreased by 1.52%, while its trading volume increased by 32.02% in the past day.
Will the $3,360 support level hold or break?
On the 4-hour chart, it can be seen that the price of ETH has dropped towards $3,360 and is trading below the 100-day simple moving average (SMA). At the moment, the price is consolidating, and is slightly above this level.
Additionally, the 4-hour Relative Strength Index (RSI) indicates that Ethereum price may break below this support level and continue its downtrend as 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 drop below the 100-day simple moving average. Although the price of ETH is still bullish, based on the current price action it may tend to decline further in the long term.
Finally, the 1-day RSI indicates a future downtrend as the signal line has already fallen below 50% and is heading towards the oversold zone. By analyzing the prices and forming technical indicators, we can suggest that the crypto asset will likely break the support level at $3,360.
Ethereum’s path beyond $3,360
When exploring the ETH outlook and strategies beyond $3360, it was revealed that if the ETH price breaks this level, it may move down to test the $3051 support level and may move to test the $2865 support level and other levels below if the price breaks this level.
However, if ETH price faces rejection at the $3,360 support level, it will start moving upwards towards Resistance level is $3,659. If the digital asset breaks through this support level, it may move further to test the resistance level of $3,975 and possibly other higher levels.
Featured image by Adobe Stock, chart by Tradingview.com
