News 
December 9, 2024 
4 min. 
The price of Ethereum (ETH) has been on an impressive run in recent months, but technical signs indicate that a correction may be on the way. The asset is currently trading near $3,800, showing signs of resistance in the $4,000 region.
In this analysis, we will explore the key support and resistance levels and what to expect for ETH through the end of 2024.
ETH Uptrend Shows Signs of Weakening
On the daily chart, Ethereum has been in a clear uptrend since October, with a cumulative gain of over 45%. However, the recent rejection at the $4,000 region, which coincides with a key resistance level, signals a potential slowdown.
Key resistance for ETH is at the recent high of $4,087.73. This level represents the high of the current move, where sellers have shown strength by pushing the price lower. Above this resistance, $4,300 would be the next target, based on the Fibonacci projection. Therefore, a break above these levels would pave the way for new highs.
On the other hand, the most relevant support is at $3,677, which corresponds to the 38.2% Fibonacci level. This level will act as a crucial point in determining whether Ethereum can sustain its uptrend or enter a sharper correction phase. However, if it loses this level, the next supports are $3,534.28 and $3,418.04.
If ETH loses the support at $3,418.04, the trend could change to bearish, with the next significant support at $3,200.
Ethereum Trading Volume Also Declines
The daily trading volume showed a decrease during the last upward movement, indicating a possible weakening of the momentum. Furthermore, the increase in volume during bearish days reinforces the pressure from sellers, which could lead to a consolidation or correction in the short term.
To sustain the rally, Ethereum needs an increase in buying volume, especially when it retests the $4,000 resistance.
In addition, the Relative Strength Index (RSI) has retreated from 72.67 to 64.81, corroborating the weakening momentum of the uptrend. A drop in the RSI below 60 could signal a short-term reversal.
If Ethereum manages to break the $4,087.73 resistance with significant volume, it could reach $4,300 and even $4,500. This would indicate strong bullish momentum to close the year at new highs.
If the price fails to overcome the resistance, ETH could consolidate between $3,677 and $3,534.28. Thus, this range would allow for a healthy correction before a new upward attempt.
If sellers dominate and the price breaks the support at $3,418.04, Ethereum could retreat to $3,200, indicating a possible trend reversal in the medium term.
