Ethereum price forecast: bullish recovery or short-term trap?
Ethereum ($eth) is trading at $3,550 and is recovering from a recent decline after testing support of over $3,500. After multiple weeks of rallying below $3,838 resistance, the charts suggest that ETH is consolidated, but are they ready for another leg or do you see a more downside?
ETH coins held above key support
After reaching the local top of nearly $3,838, Ethereum boosted support around the $3,530-3,550 zone. This area has reached a critical short-term demand level. The bounce here is especially encouraging when daily candles form higher and lower than July lows.
ETH/USD 1 Day Chart – TradingView
The 50-day SMA is now $3,012 and served as dynamic support during the June-July rallies. As long as ETH is above this level, the bullish structure remains intact.
Major levels to see
From the chart:
resistance:
🔼$3,838 (recent highs)
🔼$3,620 (minor horizontal resistance)
support:
🔽$3,530 (current support)
🔽$3,200 (key horizontal support)
🔽$3,012 (50-day SMA)
🔽$2,732 (strong demand zone)
Losing the $3,530 level could open a retest of $3,200. Under that, $3,012 will be the bull’s make-up or break level.
RSI proposes reconstruction of potential momentum
The 14-day RSI has recently been cooled from overbuying territory and is currently sitting around 56.05. This suggests that there is still room for higher movement before the ETH heats up again.
Importantly, the RSI bouncing off after a clean test at 50 level.
ETH vs Bitcoin: Monitoring correlation
Although Ethereum retains support, it is worth noting that Bitcoin is still approaching support levels between $112,000 and $115,000. If BTC drops, ETH may continue. Even if your own chart looks healthy.
