Ethereum May Have Bottomed Out – is it Time for Recovery?

The value of Ethereum continued to fall, dropping below the support level of $3,320.

ETH tested support at $3,240 and is now poised for a potential rally above resistance at $3,380.

The price of Ethereum has encountered difficulty for a new advance above the $3,500 area. Following Bitcoin’s bearish trend, ETH dropped below $3,350 and bears pushed it below the $3,320 support level.

A low of $3,230 was established and the price is now correcting its losses. There is a minor upside move above the $3,300 and $3,320 levels. The value of the altcoin has climbed above the 23.6% Fib retracement level of the recent decline, moving from a high of $3,517 to a low at $3,230.

At the time of writing, Ethereum is trading below $3,400 and the 100-hour simple moving average. On the upside, resistance could be encountered near the $3,375 level or the 50% Fib retracement level.

The first significant resistance is near the $3,450 level. In addition, a key bearish trend line is forming on the hourly chart of ETH/USD with resistance around $3,440. At the time of writing, the altcoin price is hovering around $3,370.

Potential upside and key resistances

If ETH manages to break above the $3,540 resistance, it could head higher. The next key resistance is at the $3,620 level, which if overcome, could lead to a price rise towards the $3,650 level. Further gains could push the cryptocurrency towards the $3,720 resistance zone in the coming days. 

Potential for a new decline

If Ethereum fails to overcome the $3,450 resistance level, it could face another decline. Initial downside support is near $3,325 and the first major support is around the $3,240 area.

A clear move below the $3,240 support could see the price fall to $3,200. Any further losses could bring the price to the $3,120 level in the short term.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.