Ethereum Bulls Lose Momentum. The Market Enters a Decision Zone

After flirting with the upper band near $3,400, ETH slipped back and is now trading around $3,200. Moreover, this forces the market to wonder whether the push higher was a breakout attempt or just a late-cycle squeeze that needed to reset.

On the charts, ETH is currently sitting in a near-term support pocket around $3,150. Also, $3,062 is currently standing out as the clean level buyers keep defending.

Moreover, if Ethereum loses that area, the next deeper downside reference sits around the $2,773 zone. Which acted as a larger pivot in prior swings.

Ethereum Price Stalls After $3.4K Rejection

Ethereum’s recent advance stalled after repeated failures to establish acceptance above the $3.4K region. An area that has now clearly transitioned back into resistance.

Price action on both the 4H and daily timeframes shows rejection-driven structure. Moreover, upper wicks and declining follow-through confirm the presence of supply rather than temporary volatility.

Positioning also looks like it cooled. Open interest is down about 2.68% on the day, a signal that leverage has been taken off the table instead of being aggressively added at these levels.

Meanwhile, exchange flow data shows roughly 39.8K ETH net outflow, which could mean coins are leaving exchanges, therefore reducing immediate sell pressure.

Funding rates also look modestly positive, which fits the idea of a reset instead of a full-blown trend break.

*Ethereum exchange netflows remain volatile as price consolidates, reflecting continued positioning shifts rather than panic selling.*

Support Needs to Hold for Bullish Continuation

From an optimistic perspective, Ethereum’s structure now hinges on whether buyers can defend the $3.1K support zone. Keep in mind that sustained holding above this level would keep the broader bullish structure intact.

Moreover, it would also allow the price to consolidate before another attempt at reclaiming higher resistance levels. Therefore, a clean reclaim of $3.3K would be required to reopen the path toward $3.4K and above.

On the other hand, failure to hold current support would expose ETH to a deeper rotation toward the $2.8K region, where higher-timeframe demand previously emerged.

Until one of these levels resolves, Ethereum remains in a compression phase where direction is dictated more by positioning flows than momentum expansion.

Finally, if the price loses $3,062 and open interest starts rebuilding on the way down, that could be a sign that downside moves might accelerate.