Ethereum price flirts with $3,400 amid a potential bearish flip

ETH/USD looks primed for new gains after rebounding above a key support zone, though fresh losses loom if a bearish technical indicator confirms in the coming days

Ethereum price is hovering just below $3,400 at time of writing, with the cryptocurrency 2.9% in the green according to data from CoinGecko. 

The immediate outlook for the coin suggests bulls could see more gains short term, with the upbeat view likely after the Ethereum network avoided a malicious attack on Tuesday. Although it failed, the attack appears to have jolted some traders into selling, the result of which was seen in Ether’s price movement on Wednesday morning.

The same outlook gripped Solana (SOL) after the network suffered an extended downtime amid transaction congestion. The incident largely contributed to a downturn in prices as SOL dipped to lows of $145 before rebounding above $160.

Ethereum price outlook

Ethereum’s price briefly broke $3,400, with bulls looking strong as they targeted another leg up with an intraday high of $3,450. While the upside view remains, the recoil to lows of $3,360 appears to have encouraged sellers.

As seen on the 4-hour chart, bulls have managed to recover above the 200 SMA ($3,371) and the downtrend line. However, the main challenge is consolidating gains above the immediate support around the 50 SMA ($3,384).

If ETH/USD extends gains above $3,400 again, the next target will be the 50% Fib level of the downswing from $3,974 to $3,015 currently located at $3,494. Other upside objectives in the short term remain at the 61.8% Fib level ($3,607) and the 76.8% Fib level ($3,768).

ETH/USD 4-hour chart. Source: TradingView

On the contrary, the technical outlook of the 50 and 200 moving averages suggests Ethereum bulls might face fresh downside pressure over the coming days. This is due to the potential for a death cross formation, with a reversal in the offing if the price flips below the 200 SMA.

In this scenario, ETH/USD could be looking at a retest of the horizontal support line near $3,350. Other bearish targets in the near term are at the 23.6% Fib level ($3,241) and another horizontal line near $3,200.

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