Ethereum’s Recent Resurgence Faces Critical Challenge at $3,550

Ethereum's recent rally has created a moment of optimism; however, significant challenges remain ahead. As the price attempts to find stability following several weeks of sideways trading, the overall market structure suggests that this movement is more of a corrective phase rather than a definitive turning point. Until Ethereum (ETH) breaks through the $3,550 resistance level, this rebound is likely just a temporary pause rather than the beginning of a robust upward trend.

Key Takeaways

Ethereum is experiencing a brief rally, but the major resistance at $3,550 remains unbroken.
The price is trapped in a sideways corrective structure since November 21, indicating a cautious market.
A decisive break above $3,550 is essential for a bullish trend to take hold.
ETH’s behavior mirrors Bitcoin's, moving within a defined range of $2,700 to $3,400.
The $2,600–$2,700 support zone is critical to maintaining a bullish outlook.

Ethereum

Sideways Correction Remains Predominant in Ethereum's Market

As analyzed by More Crypto Online, Ethereum continues to operate within a sideways corrective pattern that has persisted since November 21. The price movements remain restricted below the upper boundary of this corrective trend channel, indicating that the market has not yet demonstrated a clear shift toward a more bullish phase.

At this juncture, a break above this corrective channel is the minimum requirement to signal that upside momentum is potentially emerging. Even if Ethereum does manage to rise, it’s essential to remain cautious. Any increase from current levels could merely turn into a yellow B-wave within a larger circle wave 5, or could extend the current phase of circle wave 4. Both scenarios suggest that any upward movement might be corrective instead of the start of a prolonged rally.

Ethereum ETH remains within a descending channel pattern | Source: Chart from More Crypto Online on X

For the more optimistic outlook to gain traction, Ethereum must decisively retake the $3,550 resistance level. A proper break and sustainment above this area would strengthen the breakout structure and diminish the likelihood that the current movement is just a temporary rebound.

Until there's visible confirmation, the chances of another test of the downside remain high. Overall, the technical structure still favors either consolidation or further declines instead of a quick bullish continuation, keeping the market in a cautious stance.

ETH Exhibits Similar Trends to Bitcoin

In a recent update, Crypto Candy pointed out that Ethereum's price behavior is closely resembling that of Bitcoin, remaining confined to a specific range between $2,700 and $3,400. The price of ETH has remained relatively stable over recent sessions, reflecting a sense of indecision in the broader market as participants await clearer directional signals.

Recently, ETH found support in the $2,600 to $2,700 demand zone, where buyers entered the market, resulting in a short-term bounce. This movement allowed the price to start moving back toward higher levels within the range, indicating that immediate downside pressure is abating. If this momentum continues to grow, a move towards the upper boundary around $3,400 could regain attention.

To preserve a positive market outlook, the support area between $2,600 and $2,700 must remain intact. A significant drop below this zone would compromise the current recovery efforts and could lead to a deeper decline.

Ethereum ETH trading at $2,969 on the daily chart | Source: ETHUSDT on Tradingview.com