The price of Ethereum (ETH) is showing signs of consolidation this week, moving sideways. Traders are closely watching the chart of the market’s main altcoin. According to technical analysis data and on-chain metrics, two critical resistances hindering progress have been identified. Overcoming these barriers is vital to trigger new bullish momentum. Without this decisive move, the asset could face a larger correction.
Currently, Ethereum is struggling to stay above the important psychological support of $3,400. Technical analysis on the daily chart indicates the first significant resistance is at $3,650. This level has acted as a ceiling for the price on multiple occasions recently. If buyers manage to break through this zone, the next major hurdle awaits in the $3,800 area. Data from the 30-day MVRV (Market Value to Realized Value) indicator suggests an “opportunity zone.” This indicator compares the current price to the average acquisition price. However, sentiment in the derivatives market remains mixed, which is slowing the necessary buying momentum.
The current consolidation occurs after strong widespread volatility in the crypto market. Ethereum has been trading in a defined range for the past few weeks. This lack of clear direction creates short-term uncertainty among investors. These technical levels are crucial because they define the immediate trend. A successful breakout would validate the strength of demand on the Ethereum blockchain. Conversely, a firm rejection at $3,650 would confirm the weakness of the current bullish momentum. The market needs a clear signal to define its next big move.
Is Ethereum on the verge of a drop to $3,400?
Ethereum’s technical situation is delicate for the entire altcoin ecosystem. If the price fails to break the $3,650 barrier, selling pressure could significantly increase in the coming days. This would put the key support at $3,400 at immediate risk. A drop below that support would invalidate the short-term bullish structure. Furthermore, it would open the door to deeper corrections, seeking levels near $3,200. Derivatives traders, meanwhile, remain cautious. Open interest remains stable, but without a clear direction supporting a sustainable rise.
The immediate future of Ethereum’s price strictly depends on these technical indicators. Analysts are monitoring price action in the $3,650 and $3,800 zones. A decisive and sustained move above these areas would confirm the start of a new rally. Meanwhile, patience is key for investors awaiting a clear entry signal. The broader cryptocurrency market is also watching the direction ETH takes, as it often leads the movement of altcoins.
