Ethereum price action confirms bull trap at $2,550: major support level lost

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Ethereum has lost the $2,550 excessive timeframe resistance on a number of candle closes, confirming a potential bull trap. The price now dangers returning to vary lows, with support sitting at $2,226.

Ethereum (ETH) has reacted bearishly from a crucial excessive timeframe battle zone close to $2,550. This level had served as a key resistance in current weeks and was briefly reclaimed earlier than being lost once more on a number of candle closures—a basic indication of a bull trap formation. Rejection at this HTF level carries important implications for the approaching weeks, notably if ETH continues to commerce under this pivotal zone.

Key technical factors

• $2,550 HTF Resistance Rejection: Price closed again under this level after a short reclaim.
• Bearish Confluence Zone: Includes 0.618 Fibonacci, dynamic SI resistance, and worth space excessive.
• Next Major Support at $2,226: Key level the place price might discover liquidity and stage a possible reversal.

ETHUSDT (4H) Chart, Source: TradingView

After briefly reclaiming the $2,550 resistance level, Ethereum didn’t maintain above it and has since closed a number of candles under. This growth is technically significant, as $2,550 has been a well-established HTF resistance that has challenged price action for weeks. The transient reclaim adopted by rejection suggests a deviation, a bearish sample indicating failed upward momentum.

The rejection from this area confirms the chance of a bull trap, a scenario the place bullish breakout alerts attract patrons, just for the price to sharply reverse under the resistance. This is just not merely an area failure, however a broader technical sign suggesting Ethereum could also be getting into a extra prolonged consolidation or corrective section.

Several technical confluences reinforce the importance of this rejection. These embrace the 0.618 Fibonacci retracement from the most recent swing, dynamic structural resistance (SI resistance), and the worth space excessive from the earlier buying and selling vary. The convergence of those indicators strengthens the resistance zone’s credibility and highlights the influence of the failed breakout.

In the close to time period, Ethereum faces elevated draw back threat until it reclaims $2,550, a state of affairs that seems much less possible because the price consolidates under it. The subsequent major level to watch is the $2,226 support. This zone might act as a liquidity pocket and should provide a possible reversal setup for a transfer again towards current highs. Until such a restoration happens, continued draw back stays the extra possible consequence.

What to count on within the coming price action

As lengthy as Ethereum stays under the $2,550 HTF resistance, bearish momentum will possible persist. A rotation towards the $2,226 support zone seems possible, the place a short-term reversal might emerge.

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