Ethereum's recent rally to the $2.4K mark is being viewed as a potential bull trap, as the cryptocurrency struggles to maintain upward momentum. Despite bouncing back from the $1.8K demand zone, Ethereum remains under pressure, with the broader market structure still bearish. The asset is trading below its 100-day and 200-day moving averages, which are acting as dynamic resistance levels.
On the daily chart, Ethereum's price action has stalled at the $2.2K–$2.4K resistance region, a key supply zone where sellers continue to exert control. A decisive close above $2.4K could signal a shift in market structure, but failure to hold above $2K might lead to a retest of the $1.8K support level. On the 4-hour chart, Ethereum experienced a fake breakout above the ascending channel, indicating exhaustion in bullish momentum.
Sentiment analysis shows a slight uptick in the Taker Buy Sell Ratio, suggesting increased short-term demand. However, the lack of strong price follow-through indicates that passive sellers are absorbing this demand, reinforcing the view that the rally may be a temporary relief rather than a trend reversal.
Ethereum's $2.4K Rally Faces Resistance Amid Bearish Market
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