Ethereum tests $3,400 after recent rally; key levels at $3,270 and $3,450 may decide the next major price move.
Ethereum reached a high of $3,400 recently and has been consolidating around that level since.
The price move followed a similar pattern to Bitcoin, which also saw gains during the same period. Traders are now watching closely to see whether Ethereum can maintain its position above $3,400 or if a drop is likely.
Liquidity Below $3,270 Could Trigger Short-Term Longs
Ethereum’s recent rally pushed the price toward $3,400, but market participants are paying attention to the liquidity zones below $3,270.
If the market moves down to sweep the lows around that level, traders may look for long positions.
These setups would likely form on the 15-minute or 1-hour chart after a clear market structure shift.
Short-term traders are closely tracking these liquidity areas, as they often lead to quick reversals.
If a move below $3,270 is followed by a bounce and a break of lower highs, this could signal new buying interest.
Some traders will likely wait for confirmation of trend changes on lower timeframes before entering any trades.
This approach is based on the idea that stop losses are usually placed below key lows.
When those stops are triggered, they provide liquidity for larger market participants to enter long positions.
As a result, a bounce from this zone is seen as a potential entry point for continuation upwards.
Price Testing Weekly High Near $3,400
The weekly high at around $3,400 remains a major level of interest. Ethereum has tested this level, but it has not yet shown a clear breakout.
If price reclaims this zone on a 4-hour close, some traders may look to enter long positions with a target above $3,450.
However, if Ethereum fails to break through the $3,400 level and shows signs of rejection, short scalps may become an option.
These trades would be counter-trend and carry higher risk. Therefore, they are expected to be shorter in duration and aim for quick exits around local liquidity.
Shorts in this zone are being watched carefully, as they depend on a lack of momentum at resistance.
A false breakout followed by bearish structure on lower timeframes could support this setup. Until a clear breakout or breakdown occurs, price may continue to range near this area.
Related Reading: Ethereum Staking Reaches Record High as BitMine Increases ETH Stakes
A Move Above $3,450 May Open Path to $3,600
If Ethereum gains strength and pushes above $3,450, a continuation towards $3,600 could become more likely.
Traders watching the 4-hour chart will look for a breakout followed by a successful retest of previous resistance.
This retest would need to hold as support to validate a continuation to the upside. If that happens, buyers may aim for the $3,600 level in the coming sessions.
This scenario would suggest strong bullish momentum is still present in the market.
However, any failure to hold above $3,450 after the breakout could trigger a reversal. In that case, the market might fall back toward $3,400 or even $3,270, where previous liquidity sits.
Until the breakout is confirmed, many will remain cautious while monitoring key levels closely.
Source: https://www.livebitcoinnews.com/ethereum-price-analysis-can-eth-hold-3400-or-will-it-dip/
