Ethereum Price Nears $3,000 — Why Holding Above $3,200 Would Change the Setup

In times when the Bitcoin price volatility is at its peak

As seen in the above chart, the recent bullish impact has pushed the ETH price above the rising trend line. This has been acting as a strong support, and hence, reclaiming levels above this range could be crucial for the upcoming price action. Unfortunately, the short-term indicators do not favoring bullish continuation, as the stochastic RSI has reached the overbought zone and is preparing for a bearish crossover. If this occurs, a drop below $2,900 could compel the token to break the ascending support for the second time in the week. With this, bears may gain huge control over the rally.

The range around $3200 is important to secure, as it has not been broken and sustained since the plunge occurred during the first fortnight of November. The bears have always dragged the levels during every attempt, and hence, a breakout with a massive volume may reverse the entire trade setup.

Here’s What Traders Should Watch Next!

The weekend trades usually offer thin liquidity and limited participation, and hence, fake strength tends to fade fast while real demand shows stability. If Ethereum holds near $3000 throughout the weekend, it suggests buyers are not rushing out. However, the volume response around this area will matter the most, as stability at $3000 could offer a clean push to $3200.

The $3200 zone marks a prior supply area where past advances were stalled, and the sellers gained control. A move toward this range could test the optimism, while holding above it may test the conviction. The weekend will reveal whether the buyers can defend this zone under low liquidity. If the ETH price holds strong, attention may shift to $3200, and acceptance above this level could open the doors for higher targets at $3500, $3800 or even $4000.

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