Ethereum (ETH) is facing a crucial test as it approaches the key support level of $3,360. This level has become a battleground between bullish and bearish forces.
Support and Resistance
On the 4-hour chart, ETH’s price has dropped below the 100-day Simple Moving Average (SMA) and is currently consolidating just above $3,360. The Relative Strength Index (RSI) suggests that ETH may break below this support and continue its downtrend.
On the 1-day chart, ETH is also attempting to drop below the 100-day SMA. The RSI indicator signals a bearish trend ahead.
Implications
If ETH breaks below $3,360, it may test $3,051 and $2,865 support levels. However, if it faces rejection at $3,360, it may move upward towards $3,659 and $3,975 resistance levels.
Conclusion
The outcome of this test will determine Ethereum’s short-term price trajectory. If support holds, ETH may continue its uptrend. If it breaks, a downtrend is likely.
