One of the most brutal yet convincing deceptions we have witnessed in recent weeks was delivered by Ethereum. Bulls briefly believed that the price was pushed straight into the intersection of major resistance levels (50 EMA, 100 EMA, and general downtrend structure) and a breakout was underway.
Ethereum price review
Rather, ETH took a big hit almost immediately, rebounding below key averages and rejecting nearly $3,500. These moves are not haphazard, but rather an active attempt to test the market's confidence, coupled with the acquisition of liquidity. The subtlety is that such fakeouts usually occur near the end of the rally leg, rather than at the beginning. It clears stop levels, exposes weak hands, and kicks out impatient traders.
However, this will also put pressure on the bears. This is because if ETH maintains its high-low structure following such a strong rejection, it would indicate that the demand below is still strong enough to sustain the market. ETH is currently trading around the mid-$3,100s, slightly above the area where the previous 10-day rally started. That will be very important.
Even if the buyer defends it, larger structures still support its continuation. There is no mass exit, just a pullback after an overextension, the RSI remains neutral and the volume shows no panic.
Two scenarios
Scenario 1: The rally continues
If ETH stabilizes above $3,100 and starts moving back towards the 50 EMA, the market could attempt a further push above $3,450-$3,500. A clear breakout of this level would pave the way for a psychological $4,000 zone and a broader reversal. The fakeout then turns into a spring, which is a typical setup for a longer bullish leg.
Scenario 2: Momentum stalls
The recovery trend will weaken if ETH falls below $3,050 again. It delays macro setup, but does not destroy it. Bulls will need to retest $2,900 to rebuild the structure from lower levels.
Despite the mixed performance, ETH’s upward trajectory continues unabated. Despite the harsh disguise, the market has not collapsed. If buyers are patient, the rally could definitely continue.
