Ethereum Faces Turning Point with $3900 Resistance and $2400 Support Levels Emerging

Ethereum is currently at a critical juncture with various indicators flashing warning signs and potential risks on the horizon. The Moving Average Convergence Divergence (MACD) for Ethereum recently turned green for the first time in three months, signaling a bullish trend. However, despite this positive signal, the charts are still highlighting significant resistance at the $3,900 level.

One chart, in particular, revealed a sharp two-day downturn for Ethereum on the Coinbase platform. The opening price was recorded near $3,325, followed by a drop to a low of around $3,058, ultimately closing near $3,063. This represented a significant decrease of approximately $262 or 7.88%. The chart also depicted a strong support zone in the mid $2,000 range, which Ethereum briefly dipped into before bouncing back. However, the $3,900 level continues to loom large as a crucial hurdle for Ethereum to overcome.

In addition to these concerns, there are also comparisons being drawn between Ethereum and the iShares Russell 2000 ETF (IWM). One commentator noted that Ethereum appears to be catching up to the movements of the Russell 2000, as illustrated in a comparative chart. Both Ethereum price candles and the IWM line displayed similar patterns throughout 2024 and 2025, with notable peaks and valleys. While Ethereum recently experienced a bounce after a significant drop, there is still a noticeable gap between Ethereum and the IWM, suggesting potential room for Ethereum to make up lost ground.

Another analyst pointed out a possible flag pattern on the chart that could lead Ethereum towards a target of $2,400. The chart depicted a tight channel forming between two upward sloping trendlines, followed by a break below the channel that could signal a downward swing towards the $2,400 level. This projected move, if realized, would represent a significant drop from Ethereum’s current trading price in the low $3,000 range.

Overall, Ethereum is facing multiple challenges and risks as it navigates a critical juncture in its price trajectory. While the MACD signal offers a glimmer of hope for bulls, the resistance at $3,900, as well as the potential flag pattern leading towards $2,400, underscore the precarious nature of Ethereum’s current position in the market. Investors and traders will be closely monitoring these key levels and indicators to gauge the future direction of Ethereum’s price movement in the coming days and weeks.