Ethereum Gets Slapped Down at Key Resistance—Is This the Start of a Deeper Correction or Just Market Nonsense?

Ethereum’s rally just face-planted at the 0.618 Fibonacci level—classic trader psychology at work. Now the question burns: genuine rejection or another fakeout to trap retail?

Technical traders are sweating their charts, while the ’buy the dip’ crowd starts sharpening their knives. Meanwhile, Wall Street ’experts’ still can’t decide if crypto is an asset class or a bad joke.

Next support levels loom below, but in this market? Anything goes. Buckle up.

Key technical points

• Major Resistance Cluster: The 0.618 Fibonacci aligns with daily resistance and a descending VWAP, forming a strong technical ceiling.
• Loss of POC: Price has fallen below the volume point of control, indicating sellers are gaining control of the short-term auction.
• Bearish Structure Building: Lower highs and a stalled breakout raise the probability of a move toward the next key support near $1,540.

Detailed analysis

After an impulsive move higher, Ethereum’s price has spent several sessions consolidating below a heavy resistance zone. The 0.618 Fibonacci level, a widely watched retracement marker, is reinforced by daily horizontal resistance and a declining VWAP drawn from the last major high. This confluence attracted notable selling pressure, and ETH has now failed multiple times to break above.

What adds further caution to the current structure is the recent loss of the point of control within this region. Price has now dipped below the highest-volume node of the recent range, suggesting that the market is no longer accepting value at these levels. This often precedes range rotation or continuation in the direction of the rejection, in this case, to the downside.

The technical landscape also reveals a clear short-term bearish structure forming. ETH has been unable to print higher highs or maintain higher lows, increasing the probability of a broader correction. The next logical support level sits around $1,540, not only a structural level from previous sessions but also a zone with visible price inefficiencies (e.g., unfilled fair value gaps and single prints) that could act as magnets for price.

This setup opens the door for a potential 10% downside move from current levels, especially if the recent swing low fails to hold. Still, traders should remain alert to the possibility of a fakeout, as Ethereum has previously shown sudden strength from similar rejection zones.

What to expect in the coming price action

Ethereum’s failure to break out above the 0.618 confluence zone and its rejection from the POC suggest a higher chance of rotation toward lower supports. If price breaks below the recent swing low, the $1,540 region could be the next target.

However, if buyers can defend current levels and reclaim the POC, this might prove to be a local fakeout before resuming upward. For now, caution is warranted as price hovers NEAR a decisive level.