Ethereum Maintains Crucial Support as Momentum Indicators Flash Warning Signs

Ethereum (ETH) has established itself above the crucial $3,280 support level after experiencing a notable rally to $3,402. The cryptocurrency managed to surpass resistance levels at $3,320 and $3,350 before its subsequent pullback.

The price of ETH then dipped below the 23.6% Fibonacci retracement level of the move from the $3,060 swing low. Despite this, a bullish trend line has formed on the hourly chart with support at $3,280.

The token remains above the 100-hourly Simple Moving Average (SMA), providing additional support to its current price action. Immediate resistance lies at $3,320, followed by $3,350 and $3,385. A potential break above $3,385 could propel prices toward $3,450 and potentially $3,500.

The technical indicators are presenting a mixed picture. The Moving Average Convergence Divergence (MACD) is losing momentum in the bullish zone, while the Relative Strength Index (RSI) has dropped below 50. If the $3,280 support fails, the next key level to focus on would be $3,260 near the 100-hourly SMA.