ETH Rejected at $3.2K — Range-Bound Near $3K; $2.6K Key Downside

Published: 2025-12-06 17:01:59 |

Ethereum (ETH) rallied from ~$2.6K–$2.7K but stalled and was sharply rejected at the $3.2K supply zone, which combines a daily fair value gap (FVG) and a long-term descending trendline. On the 4-hour chart, ETH briefly broke a short-term downline and cleared short-side liquidity, yet reversed after hitting the $3.2K supply and moved back toward layered support around $3K. Price action is effectively range-bound between roughly $3.0K–$3.6K, with $3.3K as a nearby liquidity magnet and $2.6K as the primary downside target if selling resumes. Spot order-size and sentiment data show elevated retail buying near $2.7K and a liquidity sweep below the $3,032 low that captured buy stops — a pattern that can precede either a short squeeze back toward the $3.3K cluster or a deeper retracement. The broader trend remains undecided until ETH can close and hold above the 200-day moving average. Traders should watch rejection at $3.2K, reactions across the $3.0K–$3.6K band, the 200-day MA, and whether a decisive breakout above $3.3K or breakdown below $2.6K occurs to define the next major trend.

Neutral

The combined reports portray a consolidation scenario with mixed short-term signals rather than a clear directional breakout. Rejection at $3.2K and the layered supply zone create immediate downside risk and point to $2.6K as a significant support if selling resumes, which is bearish for near-term momentum. However, the 4-hour liquidity sweep below $3,032 and cleared short-side liquidity can fuel a short-covering rally toward the $3.3K cluster, giving scope for a bounce. The broader trend remains undecided until ETH can close and hold above the 200-day moving average; a confirmed breakout above $3.3K would be bullish, while failure to defend $2.6K would confirm further downside. For traders, this translates to range-bound tactics: fade rejections at supply, watch liquidity clusters for squeezes, use tight stops near identified blocks, and let a decisive break of $3.3K or $2.6K define directional trades.