Ethereum took a sharp turn after facing a firm rejection at the $3,220 level, with a breaking price structure and weaker position. The speed of the decline and the lack of strong buying interest raises an important question for traders: is this simply a warning sign in a broader uptrend, or the start of a deeper distribution phase that could put additional pressure on ETH in the near term?
Rejection at $3,220 signal distribution, not an upset
Crypto analyst PEPE is a friend highlighted that Ethereum’s abrupt rejection at the $3,220 level was deliberate rather than random. The decline was sharp, with the key structure collapsing, selling pressure accelerating, and the price quickly reaching the $3,106 area, aligning with classic distribution behavior rather than a simple upset.
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Assessing the current price reaction, there is still no sign of a real reversal. The rebound has been particularly weak, trading volume remains low and buyers have yet to demonstrate strong engagement. Instead of signaling a renewed uptrend momentumthe rise appears to be a technical pullback within a broader weakening structure.
The key technical area remains well defined. ETH is trading below the former support band between $3,170 and $3,200. As long as the price remains below this range, any upward movement will likely be viewed as a selling opportunity rather than the start of a sustainable recovery.
When this price action is considered with data from the Ethereum Spot ETF, the picture becomes clearer. Even though ETF flows remain positive on a daily basis, they lack strong momentum or an exceptional confirmation day. Capital appears to be absorbed rather than aggressively deployed, suggesting that institutions request is not yet strong enough to cause a decisive breakthrough. Until this changes, sellers should maintain control below the $3,170-$3,200 resistance zone.
Ethereum slips below $3,062 as bears regain control in the near term
In an X jobKamile Uray noted that Ethereum closed below the $3,062 level, drawing attention towards the next major bearish zone at $2,623. This level is now critical, as holding it above could allow ETH to stabilize and attempt another one. recovery move.
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On the positive side, a clean break above pink box resistance near $3,445 would activate bullish formations such as a cup and handle or ascending triangle, opening the door for a move towards the $3,894 area.
Further strength would be confirmed if ETH manages to close above the $3,661 high, which would mark the first high on the daily chart from the previous downtrend, thereby improving the price. bullish perspectives. Nonetheless, $3,894 remains a key level as it aligns with the 0.618 Fibonacci retracement of the last decline.
On the other hand, a sharp break below the $2,623 low would expose ETH to greater losses, with the $2,274 to $2,104 area becoming the next major zone. support area. This region hosts a potential “Libra” bullish reversal setup, and Ethereum could once again attempt to bounce back towards its previous all-time high if reversal confirmation appears there.
Featured image from iStock, chart from Tradingview.com
