ETH Tests Critical $3K Support Level

This range is a potential trigger point for another rally. Bulls would expect a new buying force at such levels. Past price action depicted reversals of similar areas.

Nevertheless, lapses in support are dangerous. A collapse may drive ETH to the 2800 mark. This would put the deeper accumulation wall to the test.

The momentum is weakening according to technical indicators. Volume trends indicate low purchasing conviction. Traders defend before volatility can occur.

The resistance of 3,400 dollars was strong during the last efforts. Several rejections at this stage posed selling pressure. The bears took power over the bulls, who were tired of buying.

The failed breakout changed the mood in the market. Short-term investors lowered their exposure to run risk. Long-term investors hold low positions.

Recent price movement is similar to what has occurred in the past. Past cycles had similar rejections before consolidation stages. The market is in search of a balance between the buyers and sellers.

On-chain indicators indicate conflicting trends. The inflows of the exchange rose with some of the traders leaving their positions. In the meantime, staking activity is high, which indicates long-term confidence.

The next couple of days will be crucial. ETH needs to hold the ground in the range of 3,000-3,100. A clean bounce would regain bullish momentum in the shortest time possible.

On the other hand, the breakdown amplifies downside pressure. The support of the $2,800 becomes the last defence.