Ethereum (ETH) Price Struggles Breach $3400 Barrier; Should You Buy, Hold, or Sell?

The Ethereum (ETH) price chart shows strong buying pressure from this bottom support level, preparing for a bullish reversal. The price action shows the formation of a cup and handle pattern that could initiate a recovery rally. Ethereum ETH) price lost around 38% when it made a new low of $3300 from its all time high.

Key technical points:

• The MACD indicator shows bullish crossover among its lines
• The ETH price chart shows a bearish crossover of the 20-and-100 SMA
• The 24-hour trading volume in the Ethereum coin is $ 9.2 billion, indicating a 15.6% loss.

Source-Tradingview

Previously when we covered an article on Ethereum coin, the ETH/USD pair dropped to the 0.618 Fibonacci retracement level(2950). The technical chart showed few lower price rejection candles at this support indicated the presence of strong demand pressure.

On January 11th, the chart showed a bullish engulfing candle to bounce off from the $2950 level. The ETH price currently trading at the $3292 mark, indicating a 12% gain from the bottom support. The coin is struggling to pass the combined resistance of $3400 and 200 SMA lines.

The crucial SMAs lines(20, 50, 100, and 200) show a bearish alignment in the daily time frame chart. Moreover, the coin also provides a bearish crossover of the 20 and 200 SMA, luring even more sellers in the market.

Moving average convergence divergence: This short recovery has triggered a bullish cross of the MACD and Signal line, projecting a buy signal for long traders.

Ethereum Price Chart Forms A Cup and Handle Pattern

Source- Tradingview

The ETH price is currently trading at the $3364 mark, indicating a 13% gain from the bottom support of $2950. Moreover, this recent recovery shows a cup and handle pattern in the 4-hour time frame chart.

The pattern has its neckline of the $3400 mark, and the increasing underlying bullishness in the price could provide a bullish breakout from this resistance. The supertrend indicators have turned green indicating a shift to the bullish trend.

The technical chart indicates the important supply for ETH price are at $3400 and $3600. Moreover, the support levels are $3200, followed by $2950.

Ethereum Fear and Greed Index

-Compared to the last few weeks, the Ethereum fear and greed index has shown a slight improvement as the indicator has shifted from the Extreme fear region(below 30) to the fear region(31). However, the overall market sentiment among the market participants is still bearish.