Ethereum (ETH) is currently consolidating in a tight range after the recent sell-off, showing resilience by holding above key support zones. However, the price remains heavily constrained by the falling trendline and structural resistance around the $3,400 level. While buyers defend the significant low at $2,905, tendency remains in a sideways trend until ETH reaches a decisive close above descending resistance to initiate another major rally.

ETH tries to stabilize after sell-off

According to the daily update from CyrilXBT, Ethereum is trying to form a base after the recent sell-off, but the price remains capped below the 50-day EMA of around $3,281. This level continues to be a key barrier, keeping ETH from confirming a stronger price recovery for now.

At the time of the update, the ETH rate was close to $3,131. On the other hand, initial support is around $3,050, while the broader demand zone between $2,750 and $2,900 remains a more significant area where buyer they are expected to step in if selling pressure returns. On the other hand, resistance is concentrated between $3,280 and $3,300, which closely aligns with the 50-day EMA, which is a clear “prove” level.

Looking ahead, a immaculate break and sustained hold above $3,300 could open the door to a move back towards the $3,500 area and beyond. However, it was not recovered resistance would likely lead to volatile price action, with a possible retest of the $3,000 level or even a re-entry into the $2,800 zone.

Ethereum is trading below the resistance of the descending trend line

Cryptocurrency analyst Kamile Uray revealed that ETH is currently capped and constantly moving below the blue descending trendline. This trendline acts as a significant diagonal resistance barrier, limiting ETH’s range bullish rebounds and maintains short-term downward pressure.

Despite this overhead resistance, the analyst identified a critical one support structure. Uray noted that the possibility of a continuation of the uptrend remains present as long as the price remains above the rising black trend line and above the low set at $2,905. This convergence of support is crucial to maintaining the current bullish market sentiment.

If the blue resistance of the descending trendline is decisively broken, the next rally is expected to target a series of higher resistance levels: $3,661, then $3,878 and finally $4,292. Kamile Uray synthesized the breakout condition by stating that the bearish trendline will approximately be broken if ETH manages to achieve a daily close above the $3,400 level. Meanwhile, the key condition for waiting for a further upward move is a close above $3,400 combined with the price successfully avoiding a close below the critical low of $2,905.

Featured image from Getty Images, chart from Tradingview.com