Ethereum (ETH) is currently facing a critical test as it approaches the key support level at $3,360. This price level has emerged as an important marker in recent trading sessions, with market participants keep a close eye on whether ETH can maintain its position or whether further declines are inevitable.
The $3,360 level represents a crucial battleground between bullish and bearish forces, and its outcome could set the tone for Ethereum’s short-term price trajectory. In this article, we will explore the potential price implications of ETH in the event of a rejection or breach using technical indicators.
At the time of writing, Ethereum was trading at around $3,387 and was down 1.62% with a market cap of over $407 billion and a 24-hour trading volume of over $11 billion. The market cap is down 1.52% while the trading volume is up 32.02% over the past day.
Will the $3,360 support hold or break?
The 4-hour chart shows that the price of ETH has made a decline towards $3,360 and is trading below the 100-day Simple Moving Average (SMA). Currently, the price is moving in a consolidating manner, which is slightly above this level.
In addition, the 4-hour Relative Strength Index (RSI) indicates this The price of Ethereum could break below this support level and continue its downtrend as the RSI line has dropped below 50% and could fall into the oversold zone.
Looking at the 1-day chart, it can be seen that ETH is trying to fall below the 100-day SMA. Although the price of ETH is still bullish, it may fall further in the long term based on the current price action.
Finally, the 1-day RSI indicator is signaling a bearish trend ahead as the signal line has already dropped below 50% and is heading towards the oversold zone. From the price analysis and the formation of technical indicators, it can be suggested that the crypto asset is likely to break below the $3,360 support.
Ethereum’s Path Beyond $3,360
When examining the prospects and strategies of ETH beyond $3,360 it was revealed that if the price of ETH If the price breaks below this level, it could move down to test the $3,051 support level and likely move further to test the $2,865 support level and other levels below it if the price breaches this level.
However, if ETH price is rejected at the $3,360 support level, it will move higher direction the resistance level of $3,659. Should the digital asset break this support level, it may move further to test the resistance level of $3,975 and possibly other higher levels.
Main image from Adobe Stock, chart from Tradingview.com