Current Price Action

The ongoing correction phase has pushed Ethereum to a key demand zone at $3,086.0, where the price demonstrated resilience. A prominent rejection candle emerged at this level, signalling market unwillingness to extend the downtrend.

Ethereum exhibited an impressive uptrend in November, achieving gains exceeding 70%. The support level at $3,547.0 played a pivotal role during this rally, with the price repeatedly retesting the level to confirm its strength.

Following this rebound, Ethereum has now approached the $3,547.0 level again, but this former support has flipped into resistance, impeding the upward movement.

Ethereum Key Levels

• Demand Levels: $3,086.0, $2,739.0, $2,430.0
• Supply Levels: $3,547.0, $4,013.0, $4,867.0

Technical Indicators Analysis

Bollinger Bands

The recent formation of a double-top pattern at the upper Bollinger Band around $4,093.0 signalled the likelihood of a deeper retracement. This bearish signal preceded the ongoing correction.

Stochastic Oscillator

The Stochastic Oscillator, now emerging from the oversold zone, suggests a potential recovery. This setup mirrors conditions seen at the start of November’s bullish rally, hinting at a possible resurgence in upward momentum.

Ethereum’s ability to reclaim the $3,547.0 resistance level will be critical in confirming a bullish continuation. A successful breakout above this level could set the stage for a renewed push toward higher supply zones.

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