Ethereum Price Outlook: ETH Faces Large Volume Wall Fluctuations, Possible Rotation
Ethereum has rebounded to the key confluence area around $2,550, where multiple high-timeframe indicators and technical resistance levels converge. Due to declining volume and previous range fluctuations indicating that the price has become weak.
Ethereum (#ETH ) has pulled back to a resistance-filled area after rebounding from an oversold state, an area that previously limited price movements for over 40 days. This area includes the control points of the previous range, high-timeframe resistance levels, volume-weighted average price (VWAP) resistance levels, and the golden Fibonacci retracement level, all indicating that unless there is a surge in volume, the price may pull back.
The major resistance level is at $2,550: including high-timeframe SR, the 0.618 Fibonacci level, and range control points. The volume curve shows weak demand: there has been no significant volume inflow as the current rebound encounters resistance. A range formation may occur: the structure between the $2,550 resistance level and the $2,220 support level could persist for several weeks.
This area's significance is further emphasized as the volume-weighted average price (VWAP) starting from previous volatility highs intersects with the 0.618 Fibonacci golden pocket, all gathering near the $2,550 level. Unless there is a significant volume breakout, the convergence of these technical indicators significantly increases the likelihood of a bearish rejection.
Volume remains sluggish, which is a concern for bulls. Low volume hitting multi-layer resistance levels usually leads to pullbacks, and the current lack of strong demand supports this expectation. If Ethereum fails to break through and hold the $2,550 level, it is likely to create lower highs and begin a pullback to the $2,220 support level.
What will the future price movement look like?
Ethereum is at a critical turning point. As long as the price remains below the $2,550 resistance level, a consolidation movement between $2,220 and $2,550 is expected to continue. If the price breaks below this resistance level, it will confirm lower highs and continue the consolidation trend.