Peter Smith
⬤ Ethereum is closing in on a critical resistance zone around $3,680—a level that hasn't been retested since the last major selloff. Traders are eyeing this spot as a potential short setup if ETH pushes up to that level but fails to break through. The setup reflects a cautious view as Ethereum recovers, with this technically significant barrier now in focus.
⬤ ETH has bounced back from the $3,470–$3,500 range and is now pushing toward $3,680, where heavy selling pressure previously emerged. The chart suggests a potential lower high forming, meaning bulls are facing strong resistance in taking back full control. If Ethereum gets rejected here, it could spark renewed downside momentum.
⬤ The strategy centers on waiting for a reaction at resistance rather than anticipating what happens next. If ETH tests $3,680 and shows bearish confirmation—like a sharp rejection—short sellers might jump in. But there's a flip side: if Ethereum breaks cleanly above $3,680, the bearish setup falls apart and could signal bullish continuation instead. The risk lies in the volatility around this zone—areas like this often see liquidity hunts and fake breakouts that trap traders on both sides.
⬤ Right now, Ethereum is trading near $3,557, consolidating just below the key level. Traders are waiting to see if ETH can push through $3,680 or if it confirms the short setup—a move that could set the tone for Ethereum's next big swing in either direction.
Peter Smith
