Ethereum has surged to $3.2K after rebounding from the $2.7K support zone, but multiple resistance layers now threaten to halt the advance. The cryptocurrency faces key supply zones between $3,255 and $3,610 where selling pressure typically emerges. Market sentiment data reveals retail buying patterns that historically precede deeper corrections.
What Happened: Rally Meets Resistance
Ethereum confirmed a bullish reversal from the $2.7K support level, with the price climbing to the $3.2K range as buyers returned to the market. The cryptocurrency now approaches a daily fair value gap between $3,255 and $3,367, followed by a bearish order block extending from $3,367 to $3,610, according to technical analysis. These resistance zones are expected to introduce fresh supply.
A rejection from this range could trigger a retracement toward the $3K psychological support level. The broader trend will not turn fully bullish until ETH breaks and holds above its 200-day moving average, the analysis shows.
On the four-hour chart, the cryptocurrency broke through its prevailing downtrend line, which previously acted as firm resistance. This move cleared short-side liquidity and opened additional upside potential, though the sharp rally suggests a near-term pullback toward $3K remains likely before any continued advance. The price action currently remains confined within a $3K to $3.6K trading range.
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Why It Matters: Retail Warning Signs
The Spot Average Order Size metric for Ethereum reveals increased retail participation as the price declined toward $2.7K, with smaller order flow predominantly coming from buyers accumulating near support. This pattern historically precedes another downward move, as markets often revisit entry points to trigger fear among late buyers and create liquidity that larger players use to accumulate at more favorable prices.
The current setup mirrors conditions observed between March and May, when early retail enthusiasm eventually gave way to a deeper correction.
Ethereum may experience another pullback before establishing momentum for a sustained upward trend, allowing the market to reset positions.
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