Following an explosive multi-week rally, Ethereum’s price momentum appears to be slowing as it encounters resistance near the significant $3,820 supply zone. Currently priced around $3,690, Ethereum has witnessed an intraday drop of 1.9%, breaching both the local VWAP and trendline support levels. Traders are monitoring the $3,650 to $3,680 range, as it could determine Ethereum’s next directional move.
What’s Happening With Ethereum’s Price?
ETH price dynamics (Source: TradingView)
Ethereum is experiencing a technical rejection following a strong upward surge from $2,800 to nearly $3,820. The 30-minute chart indicates a clear break below a rising wedge pattern, succeeded by a bearish retest of the breached trendline. This shift occurred after Ethereum failed to maintain a position above $3,800, aligning with key Fibonacci and supply zone resistances.
ETH price dynamics (Source: TradingView)
On the daily chart, Ethereum remains above all major Exponential Moving Averages (EMAs). However, the daily candle has now fallen below the upper Bollinger Band near $3,940, which had expanded significantly during the recent surge. This suggests potential contraction in Ethereum’s price volatility, especially if the price does not hold within the $3,650 to $3,600 region.
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