Ethereum has lost $2,550 high time frame resistance with multiple candle closures, confirming the possibility of bull traps. Prices currently risk returning to low ranges, with support sitting at $2,226.
Ethereum (ETH) responded badly from a critical high timeframe competition zone of nearly $2,550. This level has served as a key resistance in recent weeks and was temporarily recovered before being lost again with some candle closures. This is a classic sign of bull trap formation. This rejection at the HTF level will be of great significance in the coming weeks, especially if ETH continues trading under this critical zone.
Important technical points
- $2,550 HTF Resistance Rejection: Prices were closed below this level after a short recall.
- Bearish Confluence Zone: 0.618 Includes Fibonacci, dynamic SI resistance, and value area.
- Next major support for $2,226: A key level where prices can find liquidity and set a potential reversal.
Ethusdt (4H) Chart, Source: TradingView
After temporarily retrieving a $2,550 resistance level, Ethereum was unable to maintain it on top of it, and subsequently closed multiple candles. This development makes technical sense as $2,550 is a well-established HTF resistance that has been challenging price action for weeks. A short recall with continued rejection suggests deviation. This is a bearish pattern that indicates that upward momentum has failed.
Rejection from the area confirms the possibility of bull traps. This is a situation where bullish breakout signals attract buyers only because prices are rapidly reversing under resistance. This is not just a local failure, but a broader technical signal that suggests that Ethereum will enter a more extended integration or correction phase.
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Several technical confluences reinforce the importance of this rejection. These include 0.618 Fibonacci retracements from the latest swing, dynamic structural resistance (SI resistance), and high value area from previous trading ranges. The convergence of these indicators enhances the reliability of the resistance zone and highlights the impact of failed breakouts.
In the near future, Ethereum will increase its downside risk unless it regains $2,550. The next major level to monitor is $2,226 in support. This zone could act as a fluidity pocket and could provide a potential inverted setup to return to recent highs. Until such a recovery occurs, the ongoing shortcomings remain a more likely outcome.
What to expect from future price action
As long as Ethereum is below the $2,550 HTF resistance, the bearish momentum could continue. A $2,226 support zone is likely to be rotated, and short-term inversions may appear.
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