ETH is about to undergo a key test as its trading price approaches around $3,525, close to its 50 EMA. Typically, the Moving Average is an important indicator to measure market sentiment. It is crucial for ETH to regain and maintain a level above this level to sustain its rising momentum. ETH has recently recovered gradually from its low point of around $3,220 in December, indicating renewed buyer interest. Traders are closely following whether ETH can overcome significant resistance levels as this rebound puts it back in the spotlight. If ETH breaks above the 50 EMA, it may retest its previous high range of $3,800-$4,000, which could boost market sentiment overall. On the downside, the key support level for ETH is at $3,080, with immediate support at $3,320.

ETH often serves as a barometer for other digital assets, so breaking through these levels will not only disrupt its trend, but may also have a broader impact on the cryptocurrency market. Market participants are seeking clarity on the bigger trend, so this test is crucial. While ETH's strong performance may reignite bullish sentiment, failure to hold important levels could exacerbate concerns about a larger pullback. Everyone is now following the 50 EMA test and the subsequent price movement. If ETH can overcome this obstacle and stay steady, it may lay the foundation for a more positive start in 2025. However, the risk is high, and ETH needs a lot of help to sustain itself in this volatile market. To predict the next market trend, closely follow these key levels.