Ethereum Rejection at Key Resistance—Bull Trap or Buying Opportunity?

Ethereum's latest rally just hit a wall. After a spirited attempt to break through resistance, ETH prices are tumbling—and now the bears are testing critical support levels.

Here's what's unfolding:

The Breakdown: Bulls got liquidated after failing to sustain momentum above $3,400. The 24-hour chart shows a classic rejection wick followed by accelerating sell pressure.

Support Watch: All eyes on the $3,100-$3,200 zone. A daily close below this range could trigger cascading stops. Meanwhile, perpetual funding rates remain positive—suggesting stubborn optimism (or denial).

Macro Context: This pullback coincides with Bitcoin dominance reclaiming 42%. Altcoins bleeding while BTC holds? Tale as old as time—unless you're a bagholder paying 20% APY on your leverage.

Next 48 hours will decide whether this is healthy consolidation or the start of a deeper correction. Either way, volatility is back on the menu.

Ethereum Price Trims Gains

Ethereum price started a fresh decline from the $2,520 resistance, like Bitcoin. ETH price declined below the $2,500 and $2,450 levels to enter a short-term bearish zone.

Besides, there was a break below a key bullish trend line with support at $2,450 on the hourly chart of ETH/USD. The pair even spiked below the $2,400 level. A low was formed at $2,373 and the price is now attempting to recover some losses.

It climbed above the 23.6% Fib retracement level of the downward move from the $2,523 swing high to the $2,373 low. ethereum price is now trading below $2,450 and the 100-hourly Simple Moving Average.

On the upside, the price could face resistance NEAR the $2,420 level. The next key resistance is near the $2,450 level. It is close to the 50% Fib retracement level of the downward move from the $2,523 swing high to the $2,373 low. The first major resistance is near the $2,465 level. A clear move above the $2,465 resistance might send the price toward the $2,520 resistance.

An upside break above the $2,520 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,550 resistance zone or even $2,650 in the near term.

Another Decline In ETH?

If ethereum fails to clear the $2,450 resistance, it could start a fresh decline. Initial support on the downside is near the $2,375 level. The first major support sits near the $2,350 zone.

A clear MOVE below the $2,350 support might push the price toward the $2,280 support. Any more losses might send the price toward the $2,220 support level in the near term. The next key support sits at $2,150.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $2,350

Major Resistance Level – $2,450