Ethereum (ETH) has been unable to recover above the $3,300 resistance area. If the bears sink the price to $2,900-3,000, there could be a sharp decline.

In last week’s analysis, we discussed the importance of the $2,900 support level. ETH price did hold above the $2,900 support area and recently attempted a bounce, just like Bitcoin. The price saw minor gains above the $3,050 and $3,150 levels.

However, the bears are active at the $3,250 and $3,300 levels. Earlier, the price declined sharply and broke below the 50% Fibonacci retracement level of the upward move from the $2,172 low to $4,082 high. The price tested the $2,900 support and started a consolidation phase.

The bulls seem to be struggling hard near the $2,900 and $3,000 support levels. Moreover, Ethereum remains above the crucial parabolic curve on the weekly chart, which currently has support at $3,000.

The most recent two candles are now showing a possible bull exhaustion pattern. Having said that, the bears need to make a weekly close below the parabolic curve, the $2,900 support area and the 61.8% Fibonacci retracement level of the upward move from the $2,172 low to $4,082 high.

If Ethereum breaks below the $2,900-3,000 support zone, there could be a major correction. In such a case, the bears are likely to target the $2,620 support area. The next important support is near the 50-week simple moving average (blue line), which is $2,200.

Will ETH see a new rise?

Conversely, Ethereum might remain strong at the support of the parabolic curve and try to rise again. The immediate resistance is near the $3,250 level. The first important resistance is at $3,300. If the price breaks above the $3,300 resistance, it might open the doors to the $3,630 resistance.

The next key resistance could be $3,880. A close above $3,880 could spark an increase in the price towards the $4,000 resistance level. Further gains could push the price towards the $4,400 level in the coming weeks.

Overall, Ethereum price is showing some bearish signs below $3,300. If the bulls fail to protect the $2,900 weekly close, it could result in more declines towards $2,200. Conversely, the price could rise again towards $3,630 in the coming weeks.