Ethereum Price Drops 4% After Strong Rally: Key Support Levels and Possible Scenarios

Source: CryptoTicker Original Title: Ethereum Price Drops 4% After Strong Rally: Here are Possible Scenarios Original Link:

Market Overview

The Ethereum price has seen a modest pullback of around 4% after a strong upside move that pushed ETH from the $2,900 area to highs near $3,300. After several sessions of steady gains, the market is now showing signs of short-term exhaustion, with traders locking in profits near a key resistance zone.

This correction comes as Bitcoin price adjusted lower, suggesting the move is more of a technical adjustment than a shift in trend.

Ethereum Technical Analysis: Key Levels

Looking at the 4-hour chart, Ethereum faced repeated rejection around the $3,200–$3,300 zone, a level that previously acted as resistance in December. The chart shows similar price behavior earlier, where ETH struggled at this range before pulling back.

On the downside, $3,050–$3,100 is emerging as an important short-term support. A deeper correction could see ETH revisit the $2,900 area, which aligns with a strong demand zone and prior breakout level.

The Stochastic RSI has reset from overbought conditions, which often supports the case for consolidation rather than a full trend reversal.

Price Prediction After the Pullback

If Ethereum holds above $3,000, the structure remains bullish. A period of sideways consolidation could allow momentum to rebuild before another attempt to break above $3,300. A confirmed breakout above that level would open the door for a move toward $3,600–$3,800 in the coming weeks.

However, a sustained drop below $2,900 would weaken the bullish setup and could trigger a deeper retracement.

For now, Ethereum’s pullback looks like a healthy pause after a strong rally, with the broader trend still favoring upside as long as key support levels hold.