Ethereum (ETH) Technical Analysis: Key Support and Resistance in the Corrective Trend

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The Ethereum price has recently failed to break through the key resistance area of $4,000 and has continued to correct downwards under selling pressure. Currently, ETH is testing multiple key support areas, and the short-term trend remains uncertain.

Current Market Performance

Price Drop:

ETH recently fell below the important support levels of $4,000 and $3,940, reaching a low of $3,837, and the current price is attempting to consolidate the drop.

Technical Breakdown:

Bullish trend line on the hourly chart has been broken: the previous trend line (support level at $3,940) is no longer valid.

100-hour simple moving average: the price is currently hovering below the SMA, indicating an overall bearish trend.

Resistance and Rebound Points:

ETH faces initial resistance at $3,900, a level close to the 23.6% Fibonacci retracement from the drop of $4,107 to $3,837.

Greater resistance is located in the $3,970 and $4,000 area, corresponding to the 50% Fibonacci retracement level.

Key Resistance and Potential Upside Targets

Short-term Resistance Levels:

$3,900: Initial resistance currently faced by the price.

$3,970: The next resistance area to focus on.

$4,000: If this level is broken, the price may further test the strong resistance level of $4,120.

Upside Targets:

If it breaks through $4,120, ETH is expected to test the $4,250 and $4,320 area, laying the foundation for the next round of increases.

Initial Support Levels:

$3,820: A key level that needs to be maintained in the short term.

$3,780: If this level is broken, it may trigger greater selling pressure.

Major Support Levels:

$3,650: Further declines may test this support.

$3,550 to $3,500: Key psychological support area, breaking below may lead Ethereum further into a bearish market.

Ethereum is currently at a critical juncture between important support and resistance, needing to break through $3,900 and $4,000 to restore the upward trend in the short term. If it fails to hold above $3,820, the price may further test lower support levels. Until the trend is clear, investors should operate cautiously and closely monitor the breakout of key price levels.

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