Ethereum (ETH) has been in the spotlight recently, showing a strong battle between bulls and bears. Letโs break down the daily (1D) ETH/USDT chart, key technical levels, and what traders should watch in the coming days.
๐น Major Correction from All-Time High
ETH has experienced a significant pullback from its all-time high of $4,866.78 in early November. This sharp decline reflects broader market volatility and profit-taking from investors.
ATH: $4,866.78
Current Price: ~$3,114.56 (closing price on the chart)
Correction Magnitude: ~36% drop from peak
Such a pullback is normal in cryptocurrency markets, especially for high-cap assets like ETH, but the next moves depend heavily on key support and resistance zones.
๐ก๏ธ Key Support: $2,800 Zone
The $2,800 area has emerged as a critical support level, holding Ethereum from further declines. This zone is where buyers are stepping in and preventing a deeper correction
Temporary support has stabilized price action
Selling volume has decreased, indicating weakening bearish momentum
If ETH manages to hold this level, it could serve as a launchpad for the next recovery attempt.
โก Moving Average Analysis
Ethereum is currently trading below several key moving averages, which act as dynamic resistance:
| Moving Average | Level | Significance |
| --------------- | --------- | ----------------------------- |
| MA(7) (Yellow) | $3,030.32 | Short-term momentum indicator |
| MA(25) (Pink) | $3,629.62 | Medium-term resistance |
| MA(99) (Purple) | $3,853.66 | Long-term trend barrier |
๐ข Immediate Hurdle: MA(25)
ETH recently closed above the MA(7), which is a positive short-term sign. The next challenge is the MA(25) at $3,629.
Break and hold above MA(25): Signals potential medium-term trend reversal
Failure at MA(25): Could lead to consolidation or retest of $2,800 support
The MA(99) at $3,853 remains a long-term ceiling for bulls, and breaking above it would signal a major trend shift.
๐ Volume Analysis
Selling pressure has been gradually decreasing, indicating exhaustion among bears
A rise in buying volume could help ETH sustain a recovery above MA(7) and approach MA(25)
Volume remains a critical indicator โ a low-volume rally may fail, while a high-volume surge could confirm a strong bullish reversal.
๐ฏ Key Takeaways
ETH is attempting a recovery from the $2,800 support zone
Immediate goal for bulls: reclaim $3,629 (MA25) to confirm medium-term reversal
Long-term bullish momentum requires break above MA(99) at $3,853
Decreasing selling volume is a positive signal but must be accompanied by buying momentum
โ Frequently Asked Questions
Q1: Is ETH in a bullish or bearish trend?
A1: Ethereum is in a short-term recovery, but the medium-term trend depends on breaking key resistance levels like MA(25) and MA(99).
Q2: Can ETH fall below $2,800?
A2: If support at $2,800 fails, Ethereum could retest lower psychological levels, but currently buyers are defending this zone.
Q3: What role do moving averages play?
A3: MA(7), MA(25), and MA(99) act as dynamic support/resistance zones, helping traders gauge short, medium, and long-term trend strength.
Q4: How does volume affect price action?
A4: Volume confirms the strength of a move. High volume on a breakout signals genuine buying interest; low volume may indicate a weak rally.
Q5: Should traders buy ETH now?
A5: This is not financial advice. Traders should consider support/resistance, volume, and risk management before making decisions.
๐ Conclusion
Ethereum is showing signs of stabilization and recovery after a significant correction. The $2,800 support zone is critical, and reclaiming $3,629 (MA25) will be the next milestone for bulls.
Monitoring volume, moving averages, and key support levels will help traders understand the marketโs next move. As always, trade responsibly and do your own research (DYOR).
Disclaimer: This analysis is for informational purposes only. It is not financial advice. Always do your own research and consult a professional before trading or investing.
Traders jokingly say: โETH is coming to terminate my FUD!โ ๐
