Ethereum’s rally has encountered a pause beneath a significant supply zone, with the asset trading just above $2.7K as buyers strive to maintain the recent bullish framework. The broader recovery remains intact; however, the weakening short-term momentum renders the market susceptible to a more significant pullback prior to another breakout attempt. On the daily timeframe, Ethereum has entered a consolidation phase following its robust ascent from the $1.85K-$1.92K support zone. The rally briefly approached $2.8K; however, selling pressure within the $2.68K-$2.77K resistance zone hindered a sustained breakout. Recent candles are clustered near the lower boundary of this zone, indicating that buyers have not yet absorbed the overhead supply.
Nevertheless, the broader structure continues to exhibit constructive characteristics. ETH continues to trade above the ascending trendline, with both moving averages in an upward trajectory, as the yellow average has crossed above the orange average at approximately $2.1K. This bullish crossover supports the recovery outlook; however, the RSI has eased toward 60, indicating that momentum has cooled while remaining above neutral. A sustained breakout above the $2.77K resistance boundary and the recent $2.8K high could pave the way toward the $2.9K-$3K resistance zone. Conversely, continued rejection would bring the 2.35K-2.51K demand zone into focus, where the rising trendline provides additional technical confluence. The 4-hour chart illustrates consistent rejections from the $2.68K-$2.77K supply zone, while an ascending support trendline has facilitated the establishment of progressively higher lows.
ETH is currently evaluating the trendline in the range of $2.65K-$2.66K following yet another unsuccessful endeavour to maintain a position within the resistance zone. Maintaining this support level may enable buyers to once again confront the resistance zone between $2.72K and $2.77K. However, a convincing bullish continuation would necessitate a sustained breach above the supply zone and the recent peaks near $2.8K. A decisive break below the ascending trendline would undermine the immediate bullish structure and reveal the $2.6K support area, subsequently followed by the prior swing low near $2.56K. If selling pressure extends, the highlighted $2.44K-$2.48K demand zone would become the next important area for buyers to defend. The Binance ETH/USDT liquidation heatmap indicates significant estimated liquidation concentrations on either side of the prevailing price.
The most significant nearby downside band is located around $2.62K, with further concentrations extending toward the range of $2.55K to $2.6K. Above the price level, a robust cluster is evident in the range of $2.75K to $2.78K, complemented by a wider concentration near $2.8K. This positioning situates Ethereum amidst two significant liquidation pools. A breach of the 4-hour ascending support could reveal the $2.62K cluster, where long liquidations might exacerbate the downturn. Conversely, reclaiming the nearby resistance zone could bring the overhead $2.75K-$2.8K liquidity into play and potentially accelerate an upward move through short liquidations. The heatmap does not indicate which side will be reached first. However, its alignment with the technical levels indicates that a break from the current consolidation may lead to a more pronounced movement as leveraged positions are unwound.
