Ethereum’s recent rally has stalled at the $3.2,000 resistance zone, where intense selling pressure has caused a clear rejection.
The asset is currently trading within a narrow consolidation range, with the next decisive breakout likely to dictate the next big move.
Ethereum technical analysis
Written by Shayan
daily chart
Ethereum’s rebound from the $2.6,000 support zone extends into a key supply area where the daily FVG converges with the long-term downtrend line near $3.2,000.
This confluence attracted significant selling interest, halting progress and causing a sharp rejection. This pullback also led to the formation of daily lows and the broader structure remains bearish.
This change increases the likelihood of a deeper retracement, with the $2.6,000 support zone being the main downside target.
For now, Ethereum remains range-bound, and a breakout from this tight structure will determine the next dominant trend.
4 hour chart
On the 4-hour chart, Ethereum initially broke above the short-term downtrend line and rose further.
However, strong supply in the $3.2,000 area prompted a reversal, sending the price back into a key support area consisting of a bullish order block overlapping the previous breaker block.
This layered confluence increases the likelihood of a reaction in this zone and is at a decisive level in the short term.
As a result, the market continues to fluctuate within a wide range of $3,000 to $3,6,000, suggesting further consolidation is likely to occur before a clear direction emerges.
sentiment analysis
Written by Shayan
The weekly liquidation heatmap shows that recent rejections have been accompanied by a clearing of the liquidity pool located just below the market low of $3032, gaining buy-side liquidity.
This type of liquidity acquisition often precedes a new uptrend as the market seeks pockets of higher liquidity.
Currently, the next major cluster is around $3.3 million, acting as a natural price magnet following the recent surge. From a supply and demand perspective, this could lead to a short-term rally for Ethereum towards that zone before a broader correction resumes.
