The Ethereum market has experienced some liquidations after it rose to its highest value in 4 months at just over $3,500 on Monday.
There was an increase in open interest; pressure from short-term holders created solid resistance around the $3,400 mark, leading to a drop in price. Nevertheless, analysts anticipate a rebound as buyers capitalize on the dip.
Ethereum Testing Key Support
A crypto analyst known as Ali on X noted the presence of an ascending channel on the 1-hour chart indicated by two parallel trendlines, with the upper and lower bounds acting as resistance and support, respectively.
Currently, the ETH price is trading near the lower support trendline of this channel. The analyst suggested that this positioning could indicate a potential bounce back upward if the support holds firm. He thinks ETH “looks ready to rebound” in the short term.
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With key support identified at around $3,325 and resistance noted at approximately $3,580. The analysis presented two potential scenarios for Ethereum’s price movement.
In a bullish case, if the support at the lower trendline holds, the price may rebound toward the channel’s midpoint or even reach the top resistance level.
In a bearish scenario, should the price break below the support level, it could invalidate the long setup and potentially lead to a downtrend.
Price breaking above the $3,500 key level could bring in more rallies for the Ethereum price.
