Ethereum’s explosive breakout has shifted the broader structure decisively in favor of buyers, but the rally has now encountered a major resistance zone. With ETH pulling back after reaching roughly $2.55K, the market appears to be entering a corrective phase following the highly impulsive advance.
ETH Price Analysis: The Daily Chart
On the daily timeframe, Ethereum has completed a major structural breakout. The asset initially consolidated around the $1.83K-$1.97K decision-point zone before launching higher and decisively breaking the long-standing descending trendline that had capped the market for months.
The rally subsequently cleared the $2.07K-$2.15K breaker-block zone without much hesitation and extended into the major $2.44K-$2.51K resistance area. Ethereum briefly pushed above this zone toward $2.52K before sellers stepped in, with the price now retreating to around $2.39K.
This rejection is significant given the speed of the preceding advance. After such an almost vertical rally, a period of consolidation or a deeper correction would be technically reasonable. The immediate question is whether Ethereum can reclaim and establish acceptance above the $2.44K-$2.51K resistance zone. Doing so would likely restore bullish momentum and put the recent high back under pressure.
On the downside, the $2.07K-$2.15K breaker block represents the most important major support zone visible on the daily chart. As long as this area remains intact, the broader breakout structure appears bullish despite any near-term volatility.
ETH/USDT 4-Hour Chart
The 4-hour chart shows the extent of ETH’s short-term expansion more clearly. Ethereum surged from roughly $1.87K to a high near $2.55K in only a few sessions, before encountering resistance and beginning its current pullback.
The Fibonacci retracement levels provide useful references if the correction extends. The 0.5 retracement is positioned around $2.21K, while the 0.618 level at $2.13K sits inside the important $2.07K-$2.15K support zone. The 0.702 level is also located near $2.07K, creating a strong technical confluence across this region.
As a result, the $2.07K-$2.21K area could become the primary pullback zone if sellers maintain control in the short term. A reaction from this region would preserve the bullish breakout structure and could provide the foundation for another attempt at the $2.44K-$2.55K resistance area.
A decisive loss of the $2.07K region, however, would weaken the setup and expose the deeper 0.786 retracement around $2.01K. For now, the pullback appears more consistent with cooling momentum after an outsized rally than a confirmed reversal.
Sentiment Analysis
The one-week Ethereum liquidation heatmap adds further weight to the possibility of a deeper retracement. Following the rapid rally, a notable concentration of liquidation liquidity has developed below the current market, particularly in the area above $2.2K.
This cluster could act as a short-term liquidity magnet if Ethereum continues correcting. A move toward this region would also align closely with the 4-hour 0.5 Fibonacci retracement around $2.21K, creating a notable overlap between derivatives positioning and technical structure.
Therefore, a liquidity sweep toward the $2.2K region could be a natural part of the post-breakout correction rather than necessarily signaling the end of the bullish move. The subsequent reaction around that area would likely be more important for determining whether Ethereum can stabilize and eventually challenge the $2.44K-$2.55K resistance zone again.
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