Ethereum faces a decisive battle at the $3,700 price level, with technical analysts forecasting either a bullish breakout toward $4,000 or a corrective decline to $3,300 amidst conflicting market signals. This historically significant price zone represents a crucial battleground where directional conviction remains uncertain.
Crypto analyst Michaël van de Poppe highlights concerning bearish divergence patterns, warning that failure to overcome immediate resistance at $3,800 could trigger a pullback toward support levels near $3,300. Market hesitation is reflected in contracting trading volume and neutral Relative Strength Index (RSI) readings, suggesting traders anticipate clearer directional signals.
Counterbalancing this outlook, trader Merlijn The Trader draws parallels between Ethereum’s current formation and Bitcoin’s 2020 breakout cycle through fractal analysis. Key bullish indicators include a Moving Average Convergence Divergence (MACD) crossover and past bear trap formations below $1,600, suggesting potential renewed upward momentum.
The $4,000 resistance barrier stands as Ethereum’s critical immediate milestone, with broader catalysts including Bitcoin’s price trajectory and macroeconomic conditions likely influencing movement. Market participants remain divided as bearish technical divergences conflict with emerging fractal patterns, reflecting heightened uncertainty in cryptocurrency valuations amid this pivotal technical consolidation phase.