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The cryptocurrency market opened the weekend on a bearish note, with Ethereum (ETH) experiencing a notable decline amid fluctuating market pressures.
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Despite a brief false breakout above $3,599, ETH’s price momentum has weakened, signaling potential consolidation within a narrow trading range.
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According to COINOTAG, “Ethereum’s current price action suggests cautious investor sentiment, with resistance around $3,675 acting as a critical barrier for upward movement.”
Ethereum faces bearish pressure with a false breakout near $3,600; sideways trading between $3,500-$3,600 likely as market awaits decisive movement.
Ethereum Price Analysis: Bearish Momentum and Key Resistance Levels
The Ethereum market has shown signs of weakness as the price dropped by 1.66% over the past 24 hours, reflecting broader bearish trends in the crypto sector. On the hourly chart, ETH briefly surpassed the local resistance level at $3,599, but this breakout failed to sustain, indicating strong selling pressure. If this downward momentum persists, the price may test the immediate support level at $3,500 within the next trading session. This level is critical as it has historically served as a price floor, and a breach could lead to further declines.
Sideways Trading Expected Amid Market Uncertainty
In the absence of clear directional dominance, Ethereum is likely to enter a phase of sideways trading, oscillating between the support at $3,500 and resistance near $3,600. This consolidation phase reflects market indecision, with neither buyers nor sellers able to assert control decisively. The daily candlestick patterns reinforce this outlook, as ETH’s price remains confined within the previous day’s range. Traders should monitor volume and volatility indicators closely, as a breakout from this range could signal the next significant price movement.
Midterm Outlook: Resistance at $3,675 and Potential Upside Targets
From a midterm perspective, Ethereum’s price action has encountered resistance at approximately $3,675. A successful breakout above this level could pave the way for a rally towards the psychologically important $4,000 zone, which has been identified as a vital target by market analysts. However, this scenario depends on sustained buying interest and broader market conditions, including macroeconomic factors and regulatory developments. Investors are advised to consider these dynamics when evaluating their positions.
Market Sentiment and External Influences
Market sentiment remains cautious as investors weigh recent price volatility against ongoing global economic uncertainties. External factors such as regulatory announcements, technological upgrades within the Ethereum network, and shifts in institutional investment strategies could significantly influence price trajectories. Staying informed through reliable sources and maintaining a disciplined risk management approach is essential for navigating this complex environment.
Conclusion
Ethereum’s current price behavior highlights a market in flux, with bearish pressures limiting upward momentum and fostering a likely period of consolidation between $3,500 and $3,600. While a breakout above $3,675 could signal renewed bullish potential, traders should remain vigilant and responsive to evolving market signals. Maintaining a balanced perspective and adhering to sound trading principles will be crucial as Ethereum navigates this pivotal phase.
