Key Summary:
Ethereum is correcting lower from the $4,000 resistance area.
ETH/USD is testing a key parabolic curve support level at $2,900 on the weekly chart.
If there is a weekly close below $2,900, the price could decline sharply.


Ethereum bulls face a shock
New Delhi (CoinChapter.com) - Ethereum (ETH) is struggling to stay above $3,000. If the bears can gain strength on a weekly close below $2,900, they may get stronger.
Ethereum price faces important test
Ethereum price has been experiencing a bearish run at the $4,000 resistance in the past few weeks, just like Bitcoin. ETH declined below the $3,600 and $3,500 support levels. The bears have managed to push the price below $3,500.
The price declined sharply and broke below the 50% Fibonacci retracement level of the major increase from the $2,172 low to $4,082 high. The bears are now trying to push the price lower to the $2,900 support level. Ethereum is also testing a key parabolic curve with support at $2,900 on the weekly chart and it is well above the 50-week simple moving average (blue line).


Ethereum price weekly chart | Source: ETH/USD on TradingView.com
It looks like Ethereum is holding the parabolic curve and it is stable above the 61.8% Fibonacci retracement level of the major rise from the $2,172 low to $4,082 high.
The bears are trying to push Ethereum below the $2,900 curve support and have made several attempts. If they succeed, a sharp decline is likely. In such a case, the bears are likely to target the $2,620 support area. Further losses may send the price to the 50-week simple moving average (blue line) at $2,200, where the bulls are likely to resist firmly.
New additions to ETH?
On the contrary, Ethereum might start a new growth from the curve support. The current resistance is near $3,200. If the price breaks above the $3,200 resistance, it might open the doors to the $3,400 resistance.
To start a new rally, ETH must settle above the $3,400 resistance. The next key resistance could be $3,630. If the price closes above $3,630, it could spark a move towards the $4,000 resistance. Further gains could push the price towards the $4,400 level in the coming weeks.
Overall, Ethereum price is struggling to stay above the $2,900–$3,000 support zone. If the bulls fail to protect a weekly close below $2,900, there could be a sharp decline towards $2,200. Conversely, the price is likely to resume its upward move in the coming weeks with a target of $4,400.