Ethereum (ETH), a popular cryptocurrency, is currently trading near $3,250. Despite challenges in moving higher, it’s still holding its ground above important support levels.
Why Ethereum Struggles to Move Higher
Ethereum’s price tried to break above $3,350 recently but couldn’t. This area is tough to cross because it’s where the 200-day moving average (200MA) and a key resistance level meet. The 200MA is a common tool traders use to check the average price of ETH over the past 200 trading days, helping them understand the overall trend (read more about moving averages here).
After failing to climb higher, Ethereum’s price cooled down. But it’s good news that the price hasn’t dropped below the “higher lows” formed in November. Higher lows mean that even after going down, Ethereum’s price hasn’t gone lower than before, showing some positive momentum.
One crypto expert, Daan Crypto Trades, said Ethereum was blocked by both its 200-day moving average and the $3,350 resistance level. He also noted that Ethereum is still performing better than many other cryptocurrencies in the market. While the pace of growth has slowed, the overall trend since November is upward.
ETH also broke past a downward trendline—a sloping line showing declining prices over time—and pulled back to test it again. Right now, ETH is hovering slightly above this line, which has stopped Ethereum’s price from climbing higher since October. Staying above this line might help Ethereum rise further.
Another analyst, DonnieBTC, mentioned that ETH is re-testing the trendline and might be ready for a “new bounce,” or a price increase. He said the next major resistance is between $3,600 and $3,800, with immediate support around $3,000. If Ethereum finds support near $3,000 and doesn’t drop lower, it could remind traders that the overall uptrend is still intact.
Does History Repeat Itself for Ethereum?
Ethereum recently had a 47% drop in price, which looks much like a similar drop it experienced in mid-2024. Back then, ETH quickly recovered with a strong rally in prices. A new analysis from CryptoWZRD shows that these patterns in 2024 and now are almost identical in terms of how steep and how long they were. If the past is any indication, Ethereum could recover this time as well and see another price rally, like it did in 2024.
However, CryptoWZRD also pointed out that Ethereum’s recent price movement has led to indecision among traders. Its daily price candle (a graphical representation of price movements on a particular day) shows uncertainty. ETH also appears weaker when compared to Bitcoin, with major price levels identified at $3,700 (resistance, or where the price might struggle to go higher) and $2,800 (support, or where the price may stop dropping).
The analyst added that Ethereum’s success could depend on Bitcoin Dominance, a term that measures Bitcoin’s market value compared to all other cryptocurrencies combined. A decline in Bitcoin Dominance could give Ethereum room to grow. Bitcoin Dominance shifts when traders focus on altcoins, like Ethereum, instead of Bitcoin. (Learn about Bitcoin Dominance).
Investors and the Market: What’s Happening?
Ethereum’s momentum slowed after the U.S. Federal Reserve decided on interest rates. Initially, there was excitement over a possible rate cut, but it faded fast, causing ETH’s price to pull back. Still, blockchain analytics company CryptoQuant observed early signs of buyers coming back into the market. (Read more about CryptoQuant here).
According to an analyst named Maartunn, a metric called “Net Taker Volume” is still negative, at -$138 million. This means sellers are still more active than buyers. However, it’s improving compared to October, when the number reached -$500 million.
Another good sign is that some investors are buying Ethereum again through spot ETFs, which are financial products allowing people to invest in ETH without actually owning it. Glassnode, a platform for cryptocurrency data, also noticed increases in investor interest. It reported that demand is stabilizing, which could hint at Ethereum gaining strength as the year ends (More about Glassnode).
Ethereum’s price is at a critical moment. If it breaks past key resistance levels, it could rise significantly. But if it fails and drops below support levels, it might face more struggles. All eyes are on whether ETH will keep its upward trend or lose momentum in the coming weeks.