Ethereum’s $3.2K-$3K Support Range: A Pivotal Moment for $4K Target

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On Ethereum, there’s a significant resistance area forming around $3,200 (100-day moving average) and $3,000 (200-day moving average). This area is crucial because it represents a potential final stand for buyers before any further downward pressure takes hold.

The outcome at this level is expected to shape Ethereum’s mid-term trajectory.

Technical Analysis

By Shayan

The Daily Chart

Recently, ETH has seen increased price fluctuations as it neared the significant $3.2K-$3K range, indicating a fierce struggle between purchasers and vendors. The market activity suggests that sellers are trying to drive the asset beneath these crucial moving averages, which might indicate a possible bearish breakout.

At the moment, Ethereum’s price is holding steady within a particular range, sandwiched between the $3,200 mark and the upper limit of the bullish flag. A significant move above or below this range could signal the start of Ethereum’s next significant price movement.

The 4-Hour Chart

As a researcher studying Ethereum’s price movements, I noticed that on the 4-hour chart, the cryptocurrency found temporary stability around the 0.5 Fibonacci retracement level ($3.2K) and the 0.618 Fibonacci retracement level ($3K). However, this period of consolidation was interrupted as the price dipped below these crucial support zones. Yet, a surge in buying demand swiftly reversed the trend, pushing Ethereum back above the $3.2K mark.

In this area, we continue to play a crucial role since it serves as the main stronghold for potential buyers. If the price can maintain an upward trend above $3.2K, it might trigger a resurgence of bullish sentiment, potentially leading us toward higher levels of resistance.

Conversely, a breakdown below this range could trigger liquidations, potentially driving the price toward the $2.5K support zone. For now, Ethereum is consolidating near this critical region, with a battle between buyers and sellers dictating the market’s next move.

Onchain Analysis

By Shayan

The Binance Liquidation Heatmap highlights areas where major liquidation occurrences might take place, offering valuable insights. By grouping together the liquidation points for both long and short trades, these spots frequently serve as attractions, influencing price movements as traders try to seize liquidity opportunities, causing the market to gravitate towards them.

In the latest dip, Ethereum managed to accumulate liquidity at around $3,000, leading to a swift price increase. However, there’s a significant group of resistance levels just above the crucial $3,000 support level. These levels, which have been breached by traders taking long positions, are now vulnerable to a potential downward breakthrough in the near future, making the $3,000 region particularly appealing for bears and large sellers, thereby increasing the likelihood of a bearish trend reaching these levels again.

However, a significant liquidity pool also rests at the $4K threshold, marking a potential ultimate target for buyers. However, it is likely that the price may grab liquidity below $3K first, creating a shakeout phase before resuming a bullish trajectory toward $4K. While Ethereum’s current price action reflects consolidation, the $3K level remains pivotal. A bearish breakout to capture liquidity below $3K is plausible in the short-to-mid term.

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2025-01-18 21:34