Ethereum is on the Edge: Will It Break $3,400 or Crash? Discover the Shocking Truth NOW!

Ethereum continues to demonstrate resilience in the cryptocurrency market, maintaining its position above crucial support levels, even as it encounters significant resistance near the $3,400 mark. This ability to stay strong after recent gains indicates an improving market structure, suggesting that buyers are still in control. As long as Ethereum (ETH) remains supported above its critical trend levels, the broader upside narrative appears to be intact, despite some near-term hesitations.

Daily Bull Market Support Band Holds As Key Reversal Zone

Luca, an analyst who shared insights on X, noted that Ethereum's market structure has strengthened significantly over the past several days. The price has successfully held above the 1D Bull Market Support Band, a level that has acted as a reliable reversal zone multiple times in recent months. This sustained hold implies an improvement in market confidence and a reduction in immediate downside risks.

In addition to this structural improvement, Ethereum has reclaimed the 0.618 Fibonacci point of interest around the $3,100 region. This level is often considered a critical threshold during corrective phases; holding above it typically signals that buyers are gaining an advantage.

However, despite these positive developments, Ethereum has not surged higher without encountering obstacles. Recently, the price faced rejection near the 0.5 Fibonacci level around $3,400, an outcome that Luca described as largely anticipated. Historically, this area has served as a significant decision point, often drawing selling pressure that leads to temporary pullbacks before the market decides on its next course of action.

Looking ahead, Luca maintains that the overall outlook for Ethereum remains constructive, as long as it continues to trade above both the 1D Bull Market Support Band and the 0.618 Fibonacci level. Retaining these support levels would pave the way for renewed attempts to rise, even amid short-term consolidations.

ETH Above Daily 200MA, Structure Remains Constructive

According to a recent post by Daan Crypto Trades, Ethereum is gradually advancing while respecting the Daily 200-day moving average against Bitcoin. This methodical ascent often indicates underlying strength, suggesting that buyers remain in control even in the absence of aggressive momentum.

Daan explained that prolonged consolidations and steady climbs typically resolve into an acceleration phase. Should Ethereum break out with stronger upside momentum, it could trigger renewed interest across the altcoin market, helping to lift overall sentiment and price action.

Nonetheless, the structural integrity remains conditional. Holding the Daily 200MA, which is highlighted in purple in Daan's analysis, is crucial for maintaining this constructive setup. Additionally, Bitcoin must stay above the $94,000 level to uphold the broader low-timeframe bullish structure. As long as these conditions are met, the path of least resistance continues to favor further upside for Ethereum.