Ethereum undergoes a major adjustment from $3,600; the next focus indicated by technical indicators

Looking at the past 24 hours, Ethereum continues to show an upward movement, but its relationship with key price levels has changed. It was once focused around $3,600, but now it is in a correction phase, with multiple technical indicators warning of a market turning point. How ETH will behave amid Bitcoin selling pressure depends heavily on technical analysis.

Vulnerabilities Indicated by ETH’s Technical Indicators Amid Bitcoin Selling Pressure

As overall cryptocurrency sentiment turns bearish, Bitcoin has declined by nearly 2% over the past 24 hours. During periods of increasing selling pressure, altcoins typically also fall in tandem.

However, Ethereum has shown a different pattern, recording a 2.28% increase in the past 24 hours. This suggests relative resilience amid Bitcoin’s selling pressure and indicates that some buying support remains for the second-largest cryptocurrency by market cap. Nonetheless, the buying enthusiasm behind this rise appears superficial, as several technical indicators are beginning to emit bearish signals.

The Relative Strength Index (RSI) has fallen to 49, clearly indicating that the bulls are losing control. The MACD indicator similarly shows increased bearish momentum, with the histogram bars turning downward. These signals suggest a slowdown in short-term upward pressure and increase the likelihood of a deeper correction.

ETH/USD Uptrend and Downside Risks Across Multiple Timeframes

On the 4-hour chart, ETH remains within an uptrend, with buyers maintaining control for now. The price action in this timeframe also indicates good efficiency, suggesting preparations for a new rally.

However, technical indicators on shorter timeframes tell a different story, with stronger signals of potential selling pressure emerging in more detailed timeframes. Analysis at the daily level will be crucial here. If ETH closes below $3,500 on the daily chart, the probability of further correction increases significantly.

Maintaining $3,600 Is Key; Support Break Could Test $3,000 Again

Currently, the focus is on how ETH handles the short-term support around $3,600. Maintaining this level is important for market sentiment; a break below $3,600 could quickly open the door to further declines toward the next major support zone.

Specifically, if ETH fails to break through the resistance near $3,730, a test of the $3,600 support becomes inevitable. If the bearish trend persists, a correction down to the psychologically significant $3,000 level cannot be ruled out.

Conversely, if ETH closes above $3,500 on the daily chart, there is room for the bulls to regain short-term control. In that case, ETH could retest resistance at $3,730 within hours or days and potentially aim for the psychological $4,000 level. The current position is at a critical juncture, with the $3,600 level serving as a key decision point.