Ethereum’s recent price surge has carried it straight into a tough barrier near $3,400, a level packed with technical signals that traders are watching closely. This zone now stands as a key decision point for ETH, where the market must prove whether the rally has enough strength to continue or whether sellers will step in and push prices lower.
ETH’s latest move has been sharp and impulsive, showing strong buying interest as price climbed rapidly toward this resistance. However, the $3,400 area is not just another round number. It represents a high-time-frame resistance zone where multiple technical factors overlap, increasing the chances of a reaction.
From a technical perspective, Ethereum is currently testing a region that includes a bearish order block, the value area high (VAH), and the 0.618 Fibonacci retracement level. When several resistance signals align in one place, the level tends to attract selling pressure unless buyers can overwhelm it with strong volume.
Historically, the $3,400 zone has seen sellers defend aggressively. These areas often act as distribution zones, where larger market participants sell into strength while short-term traders chase upside momentum. If that pattern repeats, ETH could struggle to stay above this level.
Market profile analysis adds to the caution. The value area high marks the upper boundary of where price has previously been accepted by the market. When price moves into this area but fails to gain acceptance, it often rotates back toward lower value. This behavior is especially common when the broader market structure remains range-bound.
The presence of a bearish order block further strengthens resistance. Order blocks often highlight zones where institutional selling previously entered the market. As Ethereum revisits these levels, it can encounter renewed supply, making it harder for price to push higher without strong demand.
Another key factor is the 0.618 Fibonacci retracement, a level widely followed by traders. Ethereum trading into this Fibonacci confluence at $3,400 raises the risk of slowing momentum or even a short-term reversal. This is often where rallies pause, consolidate, or pull back if buyers lose control.
Despite the recent bullish momentum, the bigger picture still suggests Ethereum is trading within a macro range. In such conditions, price typically moves between resistance near the value area high and support near the value area low. Unless there is a clear breakout, repeated rejections are common.
For a true breakout above $3,400, Ethereum needs two things: strong volume and sustained acceptance. A brief move above resistance without volume often turns into a false breakout, pulling price back into the range. A confirmed breakout, on the other hand, usually comes with expanding volume and multiple higher-time-frame closes above the level.
As things stand, Ethereum is sitting at a critical crossroads. If buyers can reclaim and hold above $3,400 with conviction, the odds shift toward further upside and a potential change in the broader market structure. If not, the risk of rejection remains high, opening the door for a pullback toward the value area low as the market rebalances.
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