Ethereum price rejects from the 0.618 Fib: is more downside ahead or just a fakeout?
Ethereum recently rejected from a key confluence zone, including the 0.618 Fibonacci level. With price back under the point of control, traders are watching closely for signs of a deeper move or a trap.
Ethereum’s (ETH) price action has stalled at a technically significant region, the 0.618 Fibonacci retracement level, drawn from the most recent pivot high to low. This area is also reinforced by daily horizontal resistance and a descending VWAP, adding to its weight as a decisionzone. After several failed attempts to push higher, ETH has now begun to roll over, trading back under the point of control (POC) of the local range.
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 dailyhorizontal 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.
