Technical Analysis
Ethereum has extended its upward momentum, completing an impressive rebound from the $2.7K zone. Still, several notable resistance layers lie ahead, increasing the chances of a short-term rejection.
The Daily Chart
Ethereum has confirmed a bullish reversal from the key $2.7K support, signalling renewed buying interest and a shift in market structure. However, the asset is now approaching major supply zones. The first obstacle is the daily FVG at $3,255–$3,367, followed by a bearish order block just above at $3,367–$3,610. These areas are likely to introduce fresh supply and could temporarily halt the current advance.
A rejection from this zone remains probable, potentially leading to a retracement toward the $3K psychological level. Despite the strength of the recent recovery, the broader trend will not fully turn bullish until the price breaks and sustains above the 200-day MA.
The 4-Hour Chart
Ethereum’s rally appears even more pronounced on the 4-hour chart. The market has produced a strong impulsive leg, decisively breaking the prevailing downtrend that previously acted as firm resistance. This move has effectively cleared out short-side liquidity and opened more upside potential.
Even so, given the sharp nature of the recent upswing, a short-term pullback toward the $3K support zone remains likely before any continued continuation. Overall, the price action is currently confined within the $3K–$3.6K range, and further consolidation inside this band remains the most probable outcome until a clear breakout takes shape.
Sentiment Analysis
The Spot Average Order Size metric for Ethereum highlights a clear change in market behaviour following the recent shakeout. As the price slipped toward the key $2.7K region, retail participation noticeably increased. At the same time, ETH saw a sharp upward reaction, signalling that this surge in smaller order flow came predominantly from buyers accumulating at these lower levels.
Historically, however, phases dominated by retail buying at local lows are often followed by another leg downward. Markets tend to revisit these entry points, triggering fear among late buyers and creating the very liquidity large players use to accumulate at more favourable prices. This pattern mirrors what occurred between March and May, where early retail enthusiasm was eventually met with a deeper corrective move.
With this backdrop, Ethereum may still have room for another pullback, allowing the market to reset positions and build the momentum for a stronger, more sustained upward trend.
