Ethereum at a Crossroads: Will It Break Through the Crucial Resistance Zone?

Ethereum's price action is setting up for a make-or-break moment as it tests a critical resistance level. The crypto market holds its breath—will ETH bulls finally get their breakout?

Key Resistance Battle Looms

The $3,500 zone has become Ethereum's proving ground. Three rejection wicks tell the story of frustrated bulls, while rising open interest hints at growing conviction. This isn't just technical analysis—it's high-stakes poker with blockchain chips.

Market Mechanics at Play

Liquidity pools cluster around this level like Wall Street traders at a free bar. The difference? These algorithms don't get hungover. Meanwhile, gas fees remain stubbornly high—because nothing says 'decentralized future' like paying $50 to swap tokens.

Breakout or Fakeout?

Watch for sustained volume above $3,550 to confirm the uptrend. But beware—the last three 'sure thing' rallies got ambushed by whale-sized sell walls. In crypto, even the surest bets come with a side of humble pie.

Key technical points

• $2,600 Resistance Zone: A critical former support level now acting as resistance.
• Confluence Cluster: Point of Control (POC), VWAP, and 0.618 Fibonacci retracement converge at $2,600.
• Market Structure Break: Recent drop invalidated higher high/higher low sequence on daily timeframe.

Ethereum’s price is currently trading beneath one of its most important resistance zones in recent memory. The $2,600 level previously acted as strong support but has now flipped into resistance following the breakdown.

The technical significance of this zone is further amplified by the confluence of several indicators—the point of control, volume-weighted average price, and the 0.618 Fibonacci retracement from the previous swing high all cluster around $2,600. This makes it an area unlikely to be reclaimed without strong volume and bullish intent.

Further pressuring the bullish outlook is the break in market structure. The prior daily trend of higher highs and higher lows was clearly invalidated during the recent drop to $2,111. That means the burden of proof now lies with the bulls. A reclaim of $2,600 WOULD be the first step toward re-establishing bullish momentum. Without it, this current rally is best interpreted as a bearish retest.

If Ethereum fails to reclaim the $2,600 level, a pullback becomes highly probable. The next immediate support sits around $2,227, which may offer a temporary reaction. However, a breakdown below this zone could send price much lower toward $1,790, a critical demand zone and previous base of support. This level would likely serve as a make-or-break support for a broader correction.

What to expect in the coming price action

Ethereum’s price is at a major inflection point. A confirmed breakout above $2,600 could reignite bullish structure and open the door to higher levels like $2,800.

Failure to break through, however, sets the stage for a rejection-driven pullback toward $2,227, with $1,790 on the table if that support fails. Until $2,600 is reclaimed, short-term trend bias remains tilted to the downside.