Ethereum price has repeatedly rejected the 200MA at $3,400, which represents strong dynamic resistance and raises the possibility of a deeper correction towards the $2,500 support zone.
summary
- Two rejections from the 200 MA confirmed strong dynamic resistance.
- $3,580 acts as a key downside and high zone along the 0.618 Fibonacci.
- The $2,500 support and value area low could be retested if weakness continues.
Ethereum (ETH) price is showing fresh weakness after receiving a second rejection at its 200-day moving average near $3,400. This dynamic resistance remains a structural barrier to ETH’s upward momentum.
With broader market conditions remaining uncertain and Ethereum’s failure to break out of key technical zones, the likelihood of a more severe correction is increasing. With the price below the 200MA, the asset appears poised to continue forming a bearish trading range unless buyers reclaim a significant level.
Important technical points of Ethereum price
- 2 consecutive rejections from 200MA at $3,400 Strengthen strong bearish resistance.
- Major resistance at $3,580 It coincides with the 0.618 Fibonacci retracement and forms a textbook low-to-high zone.
- Primary support is $2,500merges with the value area low, indicating a possible retest if the bearish momentum persists.
ETHUSDT (1D) chart, source: TradingView
Ethereum’s inability to move above the 200 MA has become a defining feature of the current market structure. Price has now rejected “against the dollar” on two separate attempts, each time triggering sell-side momentum and pushing ETH back into a downward trajectory. Dynamic moving average resistance often reflects overall system weakness, and in this case, repeated rejections indicate a lack of bullish strength to regain the trend.
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Above the 200 MA, the next major high resistance level is $3,580. This zone closely aligns with the 0.618 Fibonacci retracement, forming a strong confluence area where many traders expect lower highs to form. Ethereum remains in a macro bearish trend of consecutive falling highs and falling lows, marking a structural inflection point in the region. The larger downtrend remains fully intact unless the price decisively breaks above $3,580.
On the downside, the next most important high timeframe support level is $2,500. This level is also consistent with the value area low (VAL) of the current market profile, highlighting its potential role as an end point for the price if weakness continues.
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The compression effect of 200 MA is becoming increasingly evident. As price continues to trend below this dynamic level, sellers remain firmly in control and bullish attempts lack the power to sustain the breakout. This environment often precedes increased downside volatility, especially when both macro trends and market structure are bearish.
Additionally, Ethereum’s broader chart still reflects the macro downtrend, with lower highs forming each time the asset rebounds. These failed rallies are often corrective rather than impulsive, indicating fatigue rather than accumulation.
If the current rejection at $3,400 is indeed another macro low-high, as the structure suggests, ETH is preparing for an even deeper move toward or even potentially below the $2,500 support. This scenario is reinforced by the Ethereum ETF recording $75.21 million in outflows with no new inflows as the price stalls around $3,000, highlighting the decline in investor appetite.
Volume dynamics supports this view. Although recent attempts to break above the 200MA have been met with bullish volume decline, the reaction on the seller side appears to be more positive. This imbalance reinforces expectations that a continued decline remains more likely than a sudden reversal.
What to expect from future price trends
As long as Ethereum remains below the 200 MA, bearish pressure will likely prevail and the price is likely to continue consolidating between $3,580 and $2,500. A deeper correction towards the $2,500 value area lows looks increasingly likely unless the bulls can recover and close the 200 MA on strong volume.
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