Ethereum’s Bullish Surge Faces Critical Test at Key Supply Zone—What’s Next?

Ethereum’s rally hits a make-or-break moment as it slams into a stubborn supply zone. Bulls and bears are locked in a tug-of-war—will ETH power through or get knocked back?

The Resistance Standoff

The $4,000-$4,200 range isn’t budging, acting like a velvet rope at an overhyped crypto club. Traders are watching for a decisive close above or a rejection that sends ETH back to retest support.

Volume Tells the Tale

Low liquidity? That’s the market’s way of whispering, ‘We don’t trust this rally.’ Until buyers step up with conviction, skepticism will linger like a Wall Street analyst at a DeFi conference.

The Big Picture Play

A breakout here could send ETH racing toward its 2025 highs. But if it fails? Cue the ‘overleveraged longs’ sob stories. Either way, volatility’s back—and it’s hungry.

Source: RektProof on X

As anticipated a week ago, ethereum managed to climb to the $2.7k-$2.8k resistance. However, its continued ascent beyond $2,780 was a bit of a surprise. In a post on X, trader RektProof laid out a trade idea.

The idea involved a deviation above the local high that could see a bearish reversal. It followed an idea from late May, when a test of the local low at $2.4k was anticipated to result in a rally, and it did.

With the price climbing above $2,800, and short-term momentum and sentiment firmly bullish, a bearish reversal could fool the bulls and reward short sellers who recognized the clues from the price action.

Examining the Ethereum triggers for traders to go long or short

Source: ETH/USDT on TradingView

The local resistance levels at $2,716 and $2,788 were both breached. Additionally, the price retested the $2,774-level as support before climbing past $2,800. By itself, it was a bullish signal. In fact, at the time of writing, some signs of reversal were already forming.

Back in February, the $2.885-$2,915 region had served as a resistance. It may be possible that ETH WOULD test this supply zone and then reverse, as RektProof theorized. If this indeed happens, traders can use a drop below $2,774 to look for short entries.

On the other hand, a move past $2,915 would be a signal that long trades are favorable. The $3k level is a massive psychological obstacle to the bulls. However, with Bitcoin [BTC] near the $110k-mark, and buying pressure for Ethereum on the rise according to its OBV, a breakout might be likely.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion