Ethereum gathers in a major confluence zone of nearly $2,550, with multiple high time frame indicators and technical resistance converging. Due to previous range behaviors suggesting reduced volume and fatigue, this zone is important for next-directional movements.
After bounced back from oversold, Ethereum (ETH) traced it to a region filled with resistance, the same zone that previously restricted price action for over 40 days. This area includes control points from previous ranges, high time frame resistance, VWAP resistance, and gold Fibonacci retracements, indicating the possibility of rejection unless everything surges.
Important technical points
- Major resistance of $2,550: Includes high time frame SR, 0.618 Fibonacci level, and range control points.
- Volume profiles indicate weak demand: The critical volume inflow does not involve a gathering of current resistance.
- Possibility of range formation: The structure between $2,550 in resistance and $2,220 in support could last for several weeks.
Ethusdt (4H) Source: TradingView
Ethereum previously rotated within the 43-day range defined by Value Area High (VAH) and Value Area Low (VAL). Price recently wiped out the structure's lowest, bounced aggressively, forming a potential sold relief rally. However, this bounce landed straight at an older range of control points (POC), a zone that represents the heaviest volumetric concentration and often serves as a stiff resistance.
Adding more weight to the region, VWAP crosses the previous swing high and has achieved a $2,550 level along with 0.618 Fibonacci Golden Pocket. The convergence of this technical indicator significantly increases the likelihood of bearish rejection unless there is a large number of breakouts.
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The volume remains muted, which is a concern for the bull. Pushing multimers into multilayer resistance usually causes rejection, and the lack of active demand now supports that expectation. If Ethereum breaks past the $2,550 level and can't hold it, it could potentially mark a lower high and start to return to $2,220 support.
Such a rejection solidifies the new range from $2,550 to $2,220, reflecting previous rotational behavior that lasted more than 40 days. Ethereum could remain stuck within this structure until it decisively destroys the volume exceeding $2,550.
What to expect from future price action
Ethereum is at an important inflection point. As long as the price is below the $2,550 resistance zone, expect to sustain a spinning behavior between $2,220 and $2,550. Rejection here confirms lower highs and extends integration.
However, a breakout backed by a strong volume could quickly shift the story and set the stage for a trending continuation.
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