Ethereum Stalls Below $3,700: Is This the End of the Rally or Just a Breather?

Ethereum's momentum hits a wall as it struggles to break through the $3,700 resistance level. Traders are left wondering if this is a temporary pullback or the start of a deeper correction.

Key Resistance Holds Firm: ETH's repeated failures to breach $3,700 suggest weakening bullish pressure. The cryptocurrency has seen multiple rejections at this level, raising questions about its near-term upside potential.

Market Sentiment Shifts: While some see this as a healthy consolidation, others point to declining trading volumes and fading momentum indicators. The 'buy the dip' crowd might be getting nervous as leverage gets flushed out.

What's Next for ETH? If history rhymes, we could see either a classic bull trap or a springboard for the next leg up. Meanwhile, Wall Street 'experts' are still trying to figure out how to pronounce 'Ethereum' correctly.

Ethereum Rebounds from Support but Fails to Hold Gains

Following a sharp decline earlier this week, Ethereum managed to find solid buying interest around the $3,365 level. This zone acted as a strong cushion for the bulls, who quickly pushed ETH back above the $3,400 and $3,500 thresholds.

This recovery looked promising at first. Ethereum even managed to pierce through the $3,700 mark briefly. However, the bullish momentum ran out of steam NEAR the $3,750 level, a zone that has historically proven to be tough for buyers to overcome.

The resistance also coincided with the 61.8% Fibonacci retracement level of the recent downtrend from the $3,877 swing high to the $3,369 low. This level effectively rejected ETH’s advance, triggering another retreat back below $3,600.

Trend Line Break Adds to Bearish Pressure

Adding to the negative sentiment was the break below a key bullish trend line, which had been providing support near $3,620 on the hourly chart of ETH/USD. This breakdown shifted the short-term momentum back in favor of the bears and indicated that ETH may be poised for another leg lower unless buyers step in soon.

At the time of writing, Ethereum is trading below $3,600 and the 100-hour Simple Moving Average (SMA)—a sign that the current trend is losing strength. This makes the $3,500 to $3,550 zone crucial for bulls to defend.

Immediate Resistance Levels to Watch

If ETH can manage to hold above the $3,500 level, a renewed push higher isn’t off the table. The first hurdle lies around the $3,620 zone. A successful break above this WOULD set the stage for a retest of $3,700. Beyond that, the next key resistance sits near $3,750.

A clean breakout above $3,750 could open the door for further upside. In such a scenario, Ethereum could aim for $3,820. If the bullish momentum holds, the next major target would be the psychologically important $4,000 level, followed by a potential rally to $4,120.

What Happens If Ethereum Fails to Reclaim Momentum?

On the flip side, if Ethereum continues to face selling pressure below $3,620 and fails to reclaim the 100-hourly SMA, the risk of an Ethereum pullback grows significantly.

Immediate support lies near $3,550, but the real test for bulls is at $3,510. If this level breaks, the next downside target would be $3,420, followed by deeper support at $3,350. In an extended correction, ETH could even dip toward the $3,220 zone—a level that could bring in long-term buyers if reached.

Indicators Flash Bearish Signals

Technical indicators are currently tilting bearish. The MACD (Moving Average Convergence Divergence) on the hourly chart is gaining strength in the negative zone, signaling a loss of bullish momentum. Meanwhile, the RSI (Relative Strength Index) has dropped below the neutral 50 level, indicating rising selling pressure.

Until Ethereum can climb back above key resistance levels and reclaim the 100-hour SMA, the bias remains tilted slightly to the downside.

Bulls Need to Step Up—Or Prepare for More Pain

While Ethereum has shown resilience in defending key support areas, its inability to sustain gains above $3,700 is becoming a concern for short-term traders. The longer it stalls below resistance, the greater the likelihood of a fresh Ethereum pullback that could extend toward $3,350 or lower.

However, all hope isn’t lost. If macro sentiment remains positive and Bitcoin manages to stabilize above $60,000, Ethereum may find the strength to bounce again—especially if buyers return near $3,500.

Final Thoughts

Ethereum’s price action over the past 24 hours reveals a market stuck in indecision. The short-term trend favors consolidation between $3,500 and $3,750. Until one of these levels gives way convincingly, Ethereum is likely to remain rangebound—with a tilt toward caution due to mounting resistance and bearish technical signals.

Traders should closely monitor the $3,500 support and $3,750 resistance. A breakout in either direction could dictate the next big MOVE for Ethereum. For now, the risk of an Ethereum pullback remains elevated unless bulls manage to reclaim control quickly.