ETH Rejected at $3.4K — Holds Support but Faces Overhead Supply
Ethereum (ETH) is in a corrective but constructive phase after rejection near $3,400. Price remains below the 100- and 200-day moving averages on the daily chart, indicating a recovery within a wider range rather than a clear bullish breakout. Key supports: $2,700 (primary demand) and a deeper floor at $2,100–$2,300. Short-term structure on the 4-hour chart shows higher lows since December with a critical short-term support around $3,000; resistance cluster sits at $3,300–$3,500 where sellers capped the recent advance. On-chain metrics show rising transaction counts and a 30-day EMA above 2 million, signaling improving network activity that hasn’t yet been matched by price. Traders should watch for a sustained reclaim above $3,400 to validate a bullish resumption; a break below $3,000 would reopen downside toward $2,800 and potentially the $2,100–$2,300 range. Primary keywords: Ethereum, ETH price, resistance, support, on-chain activity.
Neutral
The article outlines a mixed technical and on-chain picture. Technicals are corrective: ETH trades below the 100- and 200-day moving averages and was rejected at the $3,300–$3,500 supply zone, which argues against an immediate bullish expansion. However, price has respected major demand zones ($2,700 and $2,100–$2,300) and the 4-hour chart shows higher lows, suggesting accumulation and limited downside while buyers step in. On-chain transaction counts and a rising 30-day EMA imply improving fundamental demand, but the price has not yet confirmed it by clearing the $3,400 resistance. Historically, similar setups (rising on-chain activity with price lagging) often precede broader recoveries if price reclaims major moving averages; conversely, failure to hold short-term supports like $3,000 can lead to extended corrections toward structural floors. Short-term impact: neutral to cautiously bullish if support holds, with likely range trading and volatility around $3,000–$3,400. Long-term impact: neutral-to-bullish conditional on reclaiming daily moving averages and $3,400; otherwise consolidation or renewed correction toward $2,100–$2,800 remains possible. Traders should monitor moving-average reclaims, $3,400 breakout, and the $3,000 breakdown for clear directional signals.