Ethereum experienced a surge this week, briefly breaking above a key resistance region. However, it lacked sufficient momentum, appearing to be a false breakout.
If ETH faces a more profound rejection at current levels, lower prices could follow.
Technical Analysis
By Shayan
The Daily Chart
Ethereum saw a strong push from buyers at the $3K support range, driving the price slightly above a substantial resistance region. This key region includes:
- The 100-day moving average at $3.3K
- The bullish flag’s upper boundary at $3.4K
Despite clearing these levels, ETH encountered significant selling pressure at $3.5K, highlighting insufficient buying power. This false breakout raises concerns about a potential rejection.
Continuing the bullish trend will be possible if the asset successfully breaks above these key thresholds and ultimately reclaims the $3.5K juncture. Otherwise, a rejection could lead to heightened volatility and a potential price drop. On the lower timeframe, ETH gained momentum after bouncing from the 0.5-0.618 Fibonacci retracement zone, successfully breaking above a descending wedge pattern. Such a breakout often signals a potential bullish continuation, shifting sentiment in favor of buyers. However, upon reaching the critical $3,5K resistance, Ethereum encountered significant selling pressure, triggering a retracement toward the previously broken trendline of the wedge. The upcoming price action will be crucial; if Ethereum finds support at this trendline and completes a pullback, the bullish structure could remain intact, leading to another push toward $3.5K. Conversely, if demand remains weak and buyers fail to step in, the market could face a deeper correction, potentially targeting the $3K support level again. By Shayan The Binance liquidation heatmap offers valuable insights into areas where substantial liquidation events are likely to occur. As liquidity tends to act as a price magnet, these levels often become focal points for market movements, with traders seeking to capitalize on liquidity sweeps. Recent market consolidation has resulted in the formation of a significant cluster of liquidation levels just above the key $3.5K resistance. These levels correspond to short-position liquidation levels, making them an attractive target for bulls and institutional buyers. Given this setup, Ethereum’s price could be drawn toward this liquidity pocket, increasing the probability of a breakout above $3.5K in the mid-term. Despite the current lack of strong bullish momentum, the $3.5K level remains a crucial battleground. A decisive move above this resistance to trigger short liquidations could act as a catalyst for further upside, potentially propelling Ethereum toward the psychological $4K mark in the coming sessions. The post Ethereum Price Analysis: ETH Risks Falling Below $3K After Recent Rejection appeared first on CryptoPotato. This articles is written by : Fady Askharoun Samy Askharoun All Rights Reserved to Amznusa www.amznusa.com Why Amznusa? AMZNUSA is a dynamic website that focuses on three primary categories: Technology, e-commerce and cryptocurrency news. It provides users with the latest updates and insights into online retail trends and the rapidly evolving world of digital currencies, helping visitors stay informed about both markets.
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