Ethereum (ETHUSD) recently encountered significant selling pressure after testing a key supply zone, suggesting a possible short-term pullback before any continuation of the uptrend.
Technical Overview
After an extended bullish run, ETHUSD reached an area of strong historical resistance between $3,050 – $3,150. This zone coincides with previous swing highs, as well as a high-volume area on the volume profile, making it a logical place for sellers to re-enter the market.
Price action has shown multiple rejections from this level, forming long upper wicks on the daily chart — a classic sign of reduced bullish momentum and increased profit-taking activity.
Key Indicators
RSI Divergence – The Relative Strength Index on the 4H chart is showing bearish divergence, with price making higher highs while RSI makes lower highs, indicating weakening momentum.
MACD Bearish Crossover – On shorter timeframes, MACD has crossed down, hinting at a potential shift in short-term market sentiment.
Volume Decline – The recent move into the supply zone lacked strong buying volume, which further supports the case for a pullback.
Possible Pullback Levels
If the rejection sustains, ETHUSD could retrace toward:
$2,950 – Minor intraday support & 20 EMA on the 4H chart.
$2,850 – $2,880 – Stronger support area & confluence with 50 EMA.
$2,750 – Key demand zone and psychological round number.
Outlook
The overall market structure remains bullish on higher timeframes, meaning any pullback into demand zones could be an opportunity for buyers to reaccumulate before another push higher. However, in the short term, traders should be cautious of further downside pressure if ETHUSD fails to reclaim the $3,050 zone quickly.
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