Ethereum Price Analysis: Bearish Pressure Mounts as ETH Struggles Below $3,650

Market Momentum Shifts as Ethereum Faces Critical Resistance Levels

In the volatile landscape of cryptocurrency markets, Ethereum has once again demonstrated its susceptibility to sudden directional shifts, leaving investors and traders carefully monitoring key support and resistance levels. After a promising recovery that pushed the second-largest cryptocurrency above $3,600, Ethereum is now showing signs of renewed weakness as bearish pressure intensifies. This comprehensive analysis examines the current price action, technical indicators, and potential scenarios that could unfold in the coming trading sessions.

Recovery Rally Stalls as ETH Encounters Stubborn Resistance

Ethereum embarked on an encouraging recovery trajectory earlier this week, mirroring Bitcoin’s upward momentum as the market attempted to regain its footing after recent turbulence. This upward movement successfully propelled ETH beyond several significant thresholds, including the $3,400 and $3,550 resistance levels, culminating in a push above $3,600. Market participants briefly entertained the possibility of a sustained breakout as Ethereum approached the $3,700 mark.

However, the optimism proved short-lived as selling pressure intensified near the $3,650 zone, creating a formidable barrier that bulls could not overcome. The price peaked at $3,658 before bears reasserted control, triggering a notable downside correction. This rejection at higher levels signals that despite strong buying interest, sellers remain active and unwilling to allow prices to advance beyond current ranges without significant buying pressure.

“The recent price action in Ethereum demonstrates a classic resistance rejection pattern,” notes cryptocurrency analyst Sarah Jensen. “After multiple attempts to break above $3,650, each rejection weakens bullish momentum and increases the likelihood of a deeper correction if support levels don’t hold.”

Technical Structure Deteriorates as Bearish Indicators Emerge

From a technical perspective, Ethereum’s market structure has significantly deteriorated in recent hours. The price has decisively fallen below the psychologically important $3,550 level and, more critically, beneath the 100-hourly Simple Moving Average – a technical indicator closely watched by traders for determining short-term market direction. This development typically signals a shift in momentum from bullish to bearish and often precedes further downside movement.

Adding to the bearish technical outlook, a previously established bullish trend line with support at $3,575 on the hourly ETH/USD chart has been breached. This breakdown represents a meaningful deterioration in the short-term market structure, as trend lines often serve as dynamic support levels that, once broken, frequently lead to accelerated selling pressure.

The current price action has already tested the 50% Fibonacci retracement level of the upward move from the recent $3,178 swing low to the $3,658 high. Fibonacci retracement levels are crucial technical markers that often indicate potential reversal or continuation points in price action. The fact that Ethereum is now trading below multiple technical indicators suggests that bearish sentiment may be gaining the upper hand in the near term.

Potential Recovery Scenarios and Key Resistance Levels to Watch

Despite the current bearish pressure, several recovery scenarios remain possible if buyers step in at current levels. Any renewed buying interest could initially target the $3,500 resistance level, which previously served as support before the recent breakdown. Beyond this, the $3,520 zone represents another hurdle that bulls would need to overcome to regain positive momentum.

However, the first major resistance level that would signal a meaningful shift back toward bullish sentiment sits at $3,550, coinciding with the 100-hourly Simple Moving Average. A decisive move above this threshold would be technically significant and could potentially trigger a more substantial recovery toward the recent high of $3,658.

If Ethereum manages to break and hold above the $3,650 resistance zone, the path could open for an extended rally targeting the psychologically significant $3,800 level. In an increasingly bullish scenario, the price might even challenge the $3,880 resistance, which would represent a substantial recovery from current levels and potentially signal a resumption of the broader uptrend.

“For a convincing bullish reversal, Ethereum needs to reclaim the territory above $3,550 with strong volume and follow-through,” explains cryptocurrency market strategist Michael Reynolds. “Until then, the path of least resistance appears to be downward, with traders likely to sell rallies rather than buy dips.”

Downside Risks and Critical Support Levels Under Threat

If the current bearish pressure persists and Ethereum fails to mount a recovery above $3,550, several important support levels come into focus. The immediate support zone lies around $3,420, which previously served as resistance before becoming support during the recent uptrend. A break below this level would likely accelerate the selling pressure and bring the next major support at $3,360 into play.

The $3,360 support coincides with the 61.8% Fibonacci retracement level of the recent upward move from $3,178 to $3,658. This level holds particular significance in technical analysis, as the 61.8% retracement often represents the final line of defense before a deeper correction ensues. A decisive break below this threshold would substantially increase the probability of a return to the $3,290 support level.

Should bearish momentum intensify further, the price could potentially test deeper support zones at $3,220, with the previous swing low at $3,178 serving as the last major bulwark before a more significant market correction. The psychological support at $3,150 would be the final major level before a potential retest of the $3,000 mark, which would represent a concerning development for bullish investors.

Technical Indicators Point to Continued Bearish Pressure

Several key technical indicators are currently reinforcing the bearish outlook for Ethereum. The Moving Average Convergence Divergence (MACD) indicator on the hourly timeframe is gaining momentum in the bearish zone, suggesting increasing downward pressure. The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of an asset’s price, and its current positioning indicates that bears maintain control of short-term price action.

Similarly, the Relative Strength Index (RSI) for ETH/USD has fallen below the 50 level, entering territory that typically signals bearish momentum. The RSI measures the speed and change of price movements, with readings below 50 generally associated with negative momentum and potential further downside.

These technical indicators, combined with the price action and chart patterns discussed earlier, paint a cautious picture for Ethereum in the near term. While cryptocurrency markets are known for their volatility and capacity for sudden reversals, the current technical setup suggests that traders should remain vigilant and carefully manage risk exposure.

“Ethereum’s technical indicators are flashing warning signs that shouldn’t be ignored,” cautions veteran trader Rebecca Chen. “While long-term fundamentals remain strong, short-term traders should respect the current market structure and consider defensive positioning until clearer signs of a reversal emerge.”

As Ethereum continues to navigate this critical juncture between $3,360 support and $3,550 resistance, market participants will be closely monitoring volume patterns, whale wallet movements, and broader market sentiment for clues about the next significant directional move. In a market known for its unpredictability, preparation for multiple scenarios remains the prudent approach for both traders and investors in the world’s second-largest cryptocurrency.