In times when the Bitcoin price volatility is at its peak, some altcoins like XRP have been maintaining their stability. As the bulls are trying to regain control, the second-largest crypto, Ethereum, is once again approaching the psychological barrier at $3000. At this time, the bull-bear concentration and the short-term price spikes may have a drastic impact as the markets are entering a phase where holding carriers more weight than tagging them.
Will the Ethereum price manage to sustain above $3000 or face a quick rejection as happened in the previous couple of attempts?
Why Capturing $3200 is Pivotal for the Ethereum (ETH) Price Rally?
The $3000 level is a psychological milestone, not just a structural ceiling. This barrier is closely watched by the traders, who tend to jump in if it sustains. With the weekend trade on the horizon, the volatility is picking up, pushing the rally towards this psychological barrier. Woefully, the bulls appear to have been subdued by the bears presently, which may extend the timeframe of securing the pivotal $3200 resistance level.
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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