ethereum (eth) is currently facing a critical test as it approaches the key support level of $3,360. This price point has emerged as a significant marker in recent trading sessions, with market participants watching closely to see if eth can maintain its balance or if further declines are imminent.
The $3,360 level represents a crucial battleground between bullish and bearish forces, and its outcome could set the tone for ethereum's near-term price trajectory. In this article, we will explore the possible implications for the price of eth in case of rejection or default with the help of 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. Its market cap was down 1.52% while its trading volume was up 32.02% over the past day.
Will $3,360 Support Hold or Break?
It can be seen on the 4-hour chart that eth price has seen a decline towards $3,360 and is trading below the 100-day SMA. The price is currently consolidating, standing slightly above this level.
Furthermore, the 4-hour Relative Strength Index (RSI) indicates that ethereum price may fall below this support level and continue in its downtrend as the RSI line has fallen below 50% and could fall to the oversold zone.
Looking at the 1-day chart, it can be seen that eth is attempting to break below the 100-day SMA. Although the eth price is still bullish, based on the current price action, it may tend to fall further in the long term.
Finally, the 1-day RSI indicator signals a bearish trend ahead as the signal line has already fallen 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 may likely fall below the $3,360 support.
ethereum's path beyond $3,360
Exploring the outlook and strategies for eth beyond $3,360, it was revealed that if eth price breaks below this level, it may drop to test the support level of $3,051 and likely move on to test the support level of $2,865 and other levels below if the price breaks this level.
However, if eth price faces rejection at the $3,360 support level, it will start to rise. toward the resistance level of $3,659. If the digital asset breaks above this support level, it can move further to test the resistance level of $3,975 and possibly other higher levels.
Featured image from Adobe Stock, chart from Tradingview.com
