Ethereum Stalls Below $2.8K as Resistance Caps Recovery
As buyers try to hold on to the current bullish structure, Ethereum’s surge has paused beneath a critical supply zone, with тхe ассет trading barely above $2.7K. Although the larger recovery is still in place, the market is susceptible to a more severe correction before trying to break out again due to fading short-term momentum. Ethereum has broken out of its recent consolidation on the daily timeframe, following a robust rally from the $1.85K-$1.92K support zone. For a short while, the rally approached $2.8K, but selling pressure near the $2.68K-$2.77K resistance area halted any further gains. The fact that the most recent candles are grouped together close to the zone’s lower limit indicates that purchasers have not yet consumed the supply above.
But overall, it’s still a good framework. At about $2.1K, the yellow moving average surpassed the orange one, and ETH has been trading above the rising trendline and both moving averages since then. The recovery outlook is supported by this bullish crossover, even if the RSI has dipped below 60, showing that momentum has cooled but is still above neutral. If the price can maintain its gains above the $2.77K resistance level and the $2.8K high, it may be able to break out into the $2.9K-$3K resistance area. On the other side, if rejection persists, the $2.35K-$2.51K demand zone will become apparent, where the rising trendline offers further technical convergence. An ascending support trendline has helped hold increasingly higher lows, while repeated rejections from the $2.68K-$2.77K supply zone are highlighted on the 4-hour chart. ETH is currently attempting to test the $2.65K-$2.66K trendline following yet another failed attempt to break over resistance.
Buyers may be able to re-test the $2.72K-$2.77K barrier level if this support holds. A convincing continuation of the bullish trend, however, would necessitate a long-term breakout above the supply zone and the recent highs close to $2.8K. Once the rising trendline is decisively broken, the short-term bullish structure will be weakened, revealing the $2.6K support region and the prior swing low around $2.56K. The indicated $2.44K-$2.48K demand zone would be the next critical place for buyers to protect if selling pressure continues. There are large projected concentrations of liquidation on either side of the present price in the Binance ETH/USDT heatmap. Nearby, the most notable downward band is located at approximately $2.62K, with other concentrations ranging to $2.55K-$2.6K. Above the price, there is a broad concentration around $2.8K and a large cluster at $2.75K-$2.78K.
Positioned between two significant liquidation pools, Ethereum is in a good spot. Long liquidations can worsen the fall if the 4-hour ascending support is lost, exposing the $2.62K cluster. On the flip side, short liquidations could speed up an upward advance if the immediate resistance zone is reclaimed, releasing the $2.75K-$2.8K liquidity that lies overhead. Unfortunately, the heatmap does not reveal which side will be tackled first. Nevertheless, given its congruence with the technical levels, it is possible that a rupture from the present consolidation might set off a more abrupt movement when leveraged positions unwind.
