Ethereum holds above the 200-day exponential moving average as sellers gradually lose control. Price acceptance near $3,350 hints at a changing Ethereum market structure, and technical indicators suggest the Ethereum trend may be stabilizing after months.
Ethereum is regaining technical credibility after moving above the 200-day exponential moving average, a level that has defined its broader trend. Earlier recovery attempts failed near this indicator as selling pressure intensified, pushing Ethereum back into a lower trading range.
According to TradingView data, the current interaction stands apart from previous rejection-driven rallies. Ethereum is trading slightly above the 200 EMA near $3,350, with price behavior showing acceptance rather than abrupt rejection. Instead of sharp downside wicks, the market is compressing near the level, reflecting positioning rather than short-term speculative buying.
Structural Signals Point to Stabilization
Price action since the December low shows a consistent pattern of higher lows, signaling that downside momentum has weakened across higher timeframes. Meanwhile, the 50-day and 100-day exponential moving averages are flattening, indicating bearish pressure is easing rather than expanding.
Volume data adds further context, as trading activity has increased without reaching excessive levels that often undermine sustainability. Controlled volume reflects healthier participation, while leverage-driven markets typically show extreme spikes that are currently absent.
200 EMA Becomes the Market’s Defining Line
According to technical analysis, holding above the 200 EMA is now critical, as sustained price action allows former resistance to act as support. However, expectations remain tempered, since Ethereum historically advances gradually after reclaiming this indicator rather than accelerating sharply. Invalidation levels remain clearly defined, with a strong rejection below the 200 EMA and heavy selling weakening the developing structure.
As long as Ethereum maintains acceptance above this line, downside risk appears limited because sellers no longer control price action with the same conviction. Historically, similar recoveries guide Ethereum toward prior supply zones over time, meaning the $3,600 to $3,800 range may return to focus. For now, Ethereum’s behavior around the 200 EMA remains the key signal, as the market watches closely for confirmation that this shift continues.