Ethereum News Today: Ethereum Hovers Near $3,700 Key Resistance as Technicals Signal Potential $4,000 Surge or $3,300 Drop

Ethereum’s price has reached a pivotal moment as it trades near the $3,700 level, a historically significant threshold that could either trigger a bullish breakout or a temporary pullback. Technical indicators present a mixed narrative, with bearish divergences and bullish fractal patterns signaling conflicting possibilities for the asset’s near-term trajectory. According to COINOTAG sources, a confirmed bear trap and a MACD bullish crossover suggest Ethereum could surge toward $9,000 if it surpasses the $4,000 resistance level [1]. However, this optimistic scenario hinges on the successful clearance of key barriers, which remains uncertain amid market indecision.

Crypto analyst Michaël van de Poppe has highlighted a bearish divergence following Ethereum’s recent $1,200 rally, noting a lower high that may presage a correction. He warns that failure to breach the $3,800 resistance could lead to a decline toward $3,300, driven by liquidity dynamics that might trigger long position liquidations [1]. Meanwhile, robust support is observed around $2,630, as indicated by TradingView data, though waning trading volume and a neutral RSI reading underscore the market’s hesitation. This combination of signals suggests the uptrend remains intact but cautions traders to brace for potential volatility if the current trading range breaks [1].

The interplay between volume and momentum indicators further complicates the outlook. Ethereum’s shrinking volume, coupled with a neutral RSI, points to a market in a wait-and-see phase. Such conditions often precede decisive price movements, either validating a breakout or confirming a retracement. Traders are advised to closely monitor these indicators in the coming sessions to anticipate Ethereum’s next directional shift [1].

Bullish narratives gain traction from fractal analysis, which draws parallels between Ethereum’s current chart and Bitcoin’s 2020 breakout cycle. Bitcoinsensus notes similarities in patterns such as false breakdowns, triangle consolidations, and prolonged sideways movement, suggesting Ethereum could follow a comparable upward trajectory [1]. Merlijn The Trader reinforces this view, citing a MACD bullish crossover and a bear trap confirmation below $1,600 as evidence of renewed buying momentum. If Ethereum closes decisively above $4,000, a rally toward $9,000 becomes increasingly plausible, marking a significant milestone for the asset [1].

The $4,000 resistance zone stands as a critical inflection point. A successful breakout would likely attract heightened buying interest, potentially catalyzing a strong rally. Conversely, a failure to surpass this level could result in a retracement to the $3,300 support area, reshaping Ethereum’s near-term trend. Market participants are urged to consider broader factors, including Bitcoin’s performance and macroeconomic conditions, which could influence Ethereum’s dynamics [1].

Ethereum’s current positioning reflects a dual narrative of potential correction or breakout, driven by conflicting technical signals. While bearish divergences and volume contractions hint at a short-term pullback, fractal patterns and bullish MACD signals offer compelling arguments for a substantial rally if key resistance is breached. Traders and investors must remain vigilant, leveraging these insights to navigate Ethereum’s evolving landscape while avoiding overexposure to either scenario.

Source: [1] [Ethereum Near $3,700 Faces Key Resistance With Potential for Breakout Above $4,000 or Correction to $3,300] [https://en.coinotag.com/ethereum-near-3700-faces-key-resistance-with-potential-for-breakout-above-4000-or-correction-to-3300/]