Ethereum (ETH) is currently undergoing a critical test as it approaches the key support level of $3,360. This price point has become a significant indicator in recent trading sessions, market participants we are closely watching whether ETH maintains its position or whether further declines are inevitable.

The $3,360 level represents a key battleground between bullish and bearish forces, and its outcome could set the tone for Ethereum’s near-term price trajectory. In this article, we will explore the potential price implications of ETH in the event of a rejection or breach using technical indicators.

At the time of writing, Ethereum is trading around $3,387, down 1.62%, with a market capitalization of over $407 billion and a 24-hour trading volume of over $11 billion. The company’s market capitalization decreased by 1.52% over the last day, and its trading volume increased by 32.02%.

Will the $3360 support hold or break?

On the 4-hour chart, it can be observed that the price of ETH has fallen towards USD 3,360 and is trading below the 100-day basic moving average (SMA). Currently, the price is moving in a consolidation pattern that is slightly above this level.

Additionally, the 4-hour Relative Strength Index (RSI) indicates that Ethereum price may break below this support level and continue the downtrend as the RSI line has fallen below 50% and may fall into the oversold zone.

Looking at the 1-day chart, we can see that ETH is trying to fall below the 100-day SMA. While the price of ETH is still bullish given current price action, it may trend further down in the long term.

Finally, the 1-day RSI indicator signals an upcoming downtrend as the signal line has already fallen below 50% and is heading towards the oversold zone. From the price analysis and creation of technical indicators, it can be suggested that the crypto asset could possibly break the support below $3360.

Ethereum path exceeds $3,360

Analyzing the ETH prospects and strategies above $3360, it was revealed that if the ETH price breaks below this level, it could decline and test the $3051 support level and possibly the $2865 support level and other lower levels if the price breaks through this level.

However, if ETH price is rejected at the $3,360 support level, it will start to rise towards resistance level $3,659. If the digital asset breaks this support level, it could move further to test the $3,975 resistance level and possibly other higher levels.

Featured image is from Adobe Stock, chart from Tradingview.com