## Ethereum's Upside Path Remains Challenged by the $3,350 Barrier

Ethereum is currently trading around **$2.95K** (per latest data as of Dec 25, 2025), a significant pullback from its recent highs. However, to understand the near-term technical picture, we need to review how ETH performed during its advance toward **$3,450**.

### The Recovery Attempt: Support Holds, But Resistance Looms

**ETH defended the $3,150 level** during its recent correction, signaling that buyers are still present. The price rebounded above **$3,150**, stabilized above **$3,200**, and even tested above **$3,400** before meeting fresh selling interest. This suggests the market still has conviction for higher prices, though momentum has stalled.

A **new bullish trend line** has formed on the hourly chart with support near **$3,180**, serving as the market's critical support threshold for the very short term. The 100-hour Simple Moving Average sits in this region as well, adding confluence to this level.

### Where's the Real Test? $3,320–$3,350

The next significant hurdle for Ethereum sits in the **$3,320–$3,350 zone**. This resistance band is where the market will truly be tested. A decisive break above **$3,350** would reopen the path toward **$3,400**, **$3,450**, and potentially **$3,500** if momentum accelerates beyond that point.

If bulls fail to clear **$3,320**, however, the setup deteriorates quickly. Support would revert to **$3,200**, and if that gives way, **$3,150** becomes the final line in the sand before the structure unravels toward **$3,040**, **$3,020**, and eventually **$3,000**.

### Momentum: Still Leaning Bullish, But Caution Is Warranted

Current momentum indicators suggest buyers retain an edge:

- **Hourly MACD** is generating upside momentum.
- **Hourly RSI** remains above 50, confirming buyers hold intraday control.

The **50% Fibonacci retracement** of the move from the **$2,914** swing low to **$3,448** high acted as a flush point, and the fact that buyers returned here suggests real demand exists beneath the surface.

### The Bottom Line

Ethereum's rally case is "building" rather than "established." The price has recovered key support levels and maintained above critical moving averages, which keeps the bullish structure intact. However, the market must prove it can convert **$3,350 from a ceiling into a floor**. Until that decisive breakout occurs, traders should remain cautious and watch for any rejection near **$3,450** that could trigger deeper pullbacks toward lower support zones.