Will ETH Be Abandoned After Another $3K Rejection?

Ethereum remains in a corrective and bearish phase, with price action becoming increasingly tight between bearish resistance and a well-defined demand zone. Both highs and lows suggest that ETH is approaching a critical decision point, where a directional extension may follow the current squeeze.

Ethereum Price Analysis: Daily Chart

In the daily time frame, Ethereum continues to trade below the descending line that holds the price from the previous high. Multiple rejection points in this trend line confirm its technical value, reinforcing it as a strong fundamental resistance. The stock is also trading below both the 100-day and 200-day moving averages, the 100-day MA of $3.1K has already moved lower and is exerting downward pressure on price action, while the 200-day MA is sitting higher and continues to act as a broader trend filter.

The overlapping resistance area formed by the descending trend line and moving averages has repeatedly absorbed bullish attempts, indicating persistent sell-side pressure at higher levels. At the same time, the downside momentum has eased as the price approaches a clear daily demand area around the lower boundary of the structure in the $2.7K price range. This area has previously started a strong reaction, suggesting that buyers remain active and willing to protect these levels.

The overall daily structure shows a contraction rather than a continuation of the trend. As the price oscillates between declining resistance and increasing demand, the market is pushing into a narrowing range, increasing the likelihood of a major move once this balance is resolved.

ETH/USDT 4 Hour Chart

In the 4-hour period, the pressure becomes even more obvious. The asset is currently entering between a descending resistance line and an ascending support line, creating a clear wedge framework. Recent price action shows Ethereum bouncing off the lower boundary of the wedge at the $2.8K threshold, confirming demand response and short-term buyer interest at discounted levels.

However, despite the bounce, ETH remains below the $3K internal resistance zone and has yet to achieve a clean break above the upper boundary of the wedge. This lack of follow-through suggests that bullish momentum is still weak and more active than bullish. Until ETH is able to find and hold above the descending resistance with a strong reception, the upward movement will remain corrected.

The current structure favors expansion, but the direction remains conditional. A strong break above the wedge will return short-term market control to buyers, while a rejection near resistance can open the door for another rotation to the desired direction.

Analyzing Emotions

The closing heat map highlights dense clusters of funds sitting above the current price in the $3.1K area, with the largest concentration at the top. This suggests that a move to resistance may result in a reduction in funds on the short side, while a lower sweep in low water use pools may be used to rebalance the area ahead of any larger directional push.

The current distribution of money is aligned with the observed price compression, which reinforces the idea that the market is in a stationary phase rather than a trend. As liquidity continues to build within this range, the eventual exit may be sharp, with leverage-driven volatility accelerating the move if key levels are breached.

Overall, Ethereum appears to be in a late-term compression phase across price structures and derivatives. The clarity of the direction will depend on how ETH reacts to the resistance drop and whether the currency is taken above or below the current range.