Ethereum Sellers Successfully Defend $3420 Resistance Zone

Ethereum’s price recently fell short of the current year’s high of $4085.0 following a successful breakout from a bearish channel. This bearish channel represented a correction phase that followed the impulsive price movement to the yearly high of $4085.

The price declined after the formation of a head-and-shoulders pattern at $3835.0 Before testing the parallel channel, which temporarily halted the bearish trend, a bearish order block formed at $3420. Buyers took advantage of the retest of the parallel channel, and the buying pressure upon testing the channel caused the price to surge. However, sellers effectively resisted the ascent at the bearish order block, sustaining the bearish trend.

Ethereum Key Levels

• Demand Levels: $3041.0 $2590.0 $2292.0
• Supply Levels: $3420.0 $3835.0 $4085.0

What Are the Indicators Saying?

The Stochastic indicator revealed that the price shifted from the oversold region upon testing the parallel channel to the overbought zone at the bearish order block at $3420. Currently, a lower high has formed after testing the bearish order block at $3420, indicating a continuation of the downtrend.

This lower high formation, combined with the rejection at the $3420 resistance zone, suggests that sellers remain in control, and the bearish momentum may persist. Traders should watch for potential support at the identified demand levels and monitor whether the bearish trend sustains or if a new buying opportunity arises at lower levels.

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