Ether took a edged turn after a decisive rejection at $3,220, with the price structure breaking and weakening. The speed of the decline and the lack of much buying interest raise an significant question for traders: is this just an early warning sign within a broader uptrend, or the beginning of a deeper distribution phase that could put even more pressure on ETH in the near future?
$3,220 Signal Distribution Rejection, Not a Shock
The PEPE cryptocurrency analyst is a friend highlighted that Ethereum’s edged rejection at $3,220 was intentional rather than accidental. The decline was clear, with a key structure breaking down, selling pressure increasing and the price rising rapidly towards the $3,106 area, consistent with classic distribution behavior rather than a uncomplicated shock.
Judging by the current price reaction, there are still no signs of a true reversal. The rebound has been particularly tender, trading volume remains low and buyers have not yet shown mighty commitment. Instead of signaling renewed growth momentumthe move up appears to be a technical pullback within a broader weakening pattern.
The key technical zone remains well defined. ETH is trading below the previous support band between $3,170 and $3,200. As long as the price remains below this range, any upward move will likely be viewed as a selling opportunity rather than the start of a sustained recovery.
When we compare this price action with Ethereum spot ETF data, the picture becomes clearer. While ETF flows remain positive on a daily basis, they lack mighty momentum and a unique confirmation day. Capital appears to be absorbed rather than aggressively deployed, suggesting an institutional nature demand it is not yet mighty enough to lead to a decisive breakout. Until this changes, sellers are expected to remain in control below the $3,170-$3,200 resistance zone.
Ethereum falls below $3,062 as bears regain short-term control
WX postKamile Uray noted that Ethereum closed below the $3,062 level, shifting attention towards the next major decline zone at $2,623. This level is currently critical as staying above it could allow ETH to stabilize and attempt another one recovery move.
On the other hand, a immaculate break above the pink resistance near $3,445 would activate bullish patterns such as a cup with handle or ascending triangle, opening the door to a move towards the $3,894 area.
Further strength will be confirmed if ETH manages to close above the $3,661 high, which would mark the first higher top on the daily chart from the previous downtrend, correcting bullish perspectives. Still, $3,894 remains a key level as it coincides with the 0.618 Fibonacci retracement of the recent decline.
On the other hand, a clear break below the low at $2,623 would expose ETH to deeper losses, and the next significant zone would be the $2,274-$2,104 zone support area. There is a potential bullish “Libra” reversal setup in this region, and Ethereum could once again attempt to rebound towards the previous all-time high if reversal confirmation occurs there.
Featured image from iStock, chart from Tradingview.com
