Ethereum has encountered significant resistance at the $3.2K mark, where a wave of selling pressure has led to a clear rejection of higher prices.
The cryptocurrency is currently trading within a tight consolidation range, and the upcoming breakout is expected to set the tone for its next major price movement.
On the daily chart, Ethereum”s rebound from the $2.6K support level has seen it reach a critical supply zone, where a daily Fair Value Gap (FVG) intersects with a long-established downward trendline around the $3.2K level.
This convergence attracted considerable selling interest, halting the bullish momentum and resulting in a sharp price decline.
The recent pullback has formed a daily lower low, which maintains a bearish tilt in the broader market structure.
As a result, the likelihood of a more profound retracement has increased, positioning the $2.6K support area as a key target for downside movement.
At present, Ethereum continues to fluctuate within a range spanning $3K to $3.6K, indicating that further consolidation may be necessary before a definitive direction is established.
Turning to the 4-hour chart, Ethereum initially broke through a short-term descending trendline, making upward progress. However, the strong resistance at the $3.2K level triggered a reversal.
This reversal has sent the price back toward a crucial support area characterized by a bullish order block that overlaps with a prior breaker block.
The layered confluence of these levels suggests a strong likelihood of a reaction in this zone, making it a pivotal point in the short term.
Market sentiment remains cautious, as evidenced by the weekly liquidation heatmap, which indicates that the recent price rejection coincided with a sweep of the liquidity pool below the $3032 market low, capturing buy-side liquidity.
Such liquidity sweeps often precede upward price movements as the market searches for higher liquidity pools.
Currently, the next significant liquidity cluster is positioned around the $3.3K area, which may act as a natural price magnet following the recent sweep. This dynamic suggests that Ethereum could experience a short-term upward move toward this region before any broader correction takes shape.
