Ethereum (ETH) is struggling to maintain bullish momentum after its recent recovery rally, with the price currently trading around $4,094. The chart shows a clear rejection near the $4,270–$4,540 supply zone (highlighted in red), suggesting that sellers are defending this area aggressively.
After multiple failed attempts to break above this resistance range, ETH now faces the possibility of a pullback. The dotted projection path on the chart indicates a potential move downward, which could test the $3,700–$3,500 demand zone (highlighted in green). This zone represents a strong area of previous buying interest and aligns closely with the 50%–100% Fibonacci retracement levels from the prior bullish leg.
If Ethereum fails to reclaim and close above $4,300, it could confirm the formation of a short-term lower high — a sign that bears may regain control. In that case, the next wave of selling could push ETH toward $3,700, where buyers are likely to re-enter the market.
However, if the bulls manage to reclaim $4,540, it would invalidate this bearish scenario and open the door for a move toward $4,800–$5,000, signaling renewed strength and continuation of the broader uptrend.
Key Levels to Watch:
- Resistance: $4,270 – $4,540
- Support: $3,700 – $3,500
- Bullish Breakout Level: Above $4,540
- Bearish Confirmation Level: Below $3,700
Conclusion:
Ethereum’s current structure shows a market trapped between a major resistance and a strong demand zone. Until one of these levels is broken decisively, traders can expect continued range-bound behavior and sharp reactions at key technical levels.
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