The world's second-largest cryptocurrency Ethereum (ETH) is showing signs of resistance as it approaches the $3,400 price level, after maintaining a steady upward trajectory in recent trading sessions.
ETH has bounced above key moving averages but faces challenges breaking through the $3,400 resistance mark, which it has tested three times. The cryptocurrency previously found support at $3,000 on two occasions, demonstrating resilience at that price point.
Currently trading at $3,423, ETH needs sustained buying pressure above $3,400 to potentially reach higher targets of $3,800 and eventually $4,000. However, if the price retreats from current levels, it may fall back to test the 21-day Simple Moving Average (SMA) support.
Technical analysis reveals price action confined by doji candlestick patterns on the daily chart, suggesting market indecision. While the price remains above the 21-day SMA indicating an uptrend, the presence of two candlestick wicks at resistance points to strong selling pressure at higher levels.
Key resistance levels to watch are $4,000 and $4,500, while major support zones exist at $3,500 and $3,000.
The 4-hour timeframe shows ETH trading in a sideways pattern after being rejected at $3,400 on November 23. The appearance of doji candlesticks raises questions about the sustainability of further upward movement in the near term.
The current price action suggests traders should stay alert for potential breakout or breakdown scenarios as ETH continues to test this critical resistance level.
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