Ethereum's rejection at the $3,050 resistance level has created multiple trading scenarios as the asset tests its mid-range equilibrium within a larger bullish channel structure.
Ethereum recently attempted to break through a critical resistance level at $3,050 but faced rejection, sparking intense debate among crypto traders about the asset's next move. The price action has left market participants divided on whether this represents a temporary setback or signals deeper correction ahead.
According to Lennaert Snyder on X, Ethereum swept the $3,035 high and grabbed liquidity above it before dumping back to the weak weekly open. The analyst noted that ETH just rejected the key $3,050 resistance zone, creating uncertainty for traders navigating the final week of 2025.
$ETH just rejected key $3,050 resistance. Ethereum swept the $3,035 high, grabbed liquidity above it, and dumped back to the weak weekly open.
The current price movement has created multiple trading scenarios. If a pump occurs within this impulse, traders are eyeing short positions with the $2,800 lows as the final target. A return to the $3,076 high could present opportunities for shorts after failure or longs after gains materialize.
Ethereum's rejection at this crucial level comes after an impressive rally that saw prices climb from $1,500 to $4,600. The current pullback appears to be testing key support zones that could determine the asset's trajectory into early 2026.
Bullish Channel Signals Equilibrium Retest
CryptosBatman on X presented a contrasting bullish perspective on Ethereum's price structure. The analyst highlighted that ETH is moving within a massive bullish channel and has returned to its mid-range equilibrium level.
Ethereum is moving within a massive bullish channel and is now back at its mid-range, what I like to call the equilibrium level. This zone has historically acted as both strong support and resistance.
This equilibrium zone has historically functioned as both strong support and resistance, making it a critical area for price discovery. The analyst emphasized that given Ethereum's previous rally from $1,500 to $4,600, the current movement resembles a bullish retest forming the next higher low.
The mid-range position within the bullish channel suggests Ethereum could be consolidating before another upward move. Traders monitoring this setup are watching for confirmation of support at current levels before committing to long positions.
Trading Setups and Risk Management
Multiple trading scenarios have emerged from the current price action. A sweep of $2,930 could provide opportunities for longs after reversals, though this setup is considered aggressive and mid-range with lower risk-reward ratios.
The more favorable setup for long positions appears to be after reversal confirmation when testing the $2,800 lows. This level represents a significant support zone that could attract buying pressure if reached.
Market participants should note the timing challenges, as the final week of 2025 typically sees reduced liquidity and increased volatility. Proper risk adjustment remains essential for traders navigating these conditions, with position sizing and stop-loss placement requiring extra attention during this period.
** Key Takeaways:**
- Ethereum rejected $3,050 resistance after sweeping liquidity above $3,035 and returned to weekly open levels
- ETH trades at mid-range equilibrium within massive bullish channel following rally from $1,500 to $4,600
- Trading setups favor $2,800 lows test for longs while $3,076 high presents short or long opportunities
#Ethereum #ETH #CryptoTrading #TechnicalAnalysis #CryptoMarket
Stay updated on the latest cryptocurrency news on our homepage.
Explore more in Ethereum News Category.
Related reading:
Key Topics
Crypto New Live
admin@cryptonewslive.org
ETH Rejects $3,050: What's Next for Ethereum?
Ethereum faces rejection at $3,050 resistance while trading in bullish channel. Analysts debate next move as ETH tests equilibrium levels heading into 2026.