- Ethereum bounced from the $3,100 support zone.
- Price weakness may lead to a liquidity sweep below $3,000.
- A relief rally could follow after a potential local bottom.
Ethereum has once again tested the $3,100 support zone, a key level that has held strong in recent sessions. The cryptocurrency briefly dipped to this level but quickly bounced back, indicating that buyers are still active. However, analysts warn that the strength of this bounce is not convincing enough to rule out further downside pressure.
Possible Dip Below $3,000 Before Recovery
Although the $3,100 support is holding for now, Ethereum’s current price action shows signs of weakness. There’s a possibility that the asset could sweep the liquidity below the psychological $3,000 level. This kind of movement is often driven by market makers looking to trigger stop losses and collect liquidity before a stronger rebound.
Traders are watching this zone closely, as a brief dip could mark the formation of a local bottom. If that happens, a short-term relief rally is likely to follow, offering opportunities for both short- and long-term participants.
What’s Next for Ethereum?
In the short term, the market appears to be in a consolidation phase. Ethereum needs stronger bullish momentum to break above recent resistance zones and confirm a sustained upward move. Until then, traders should be cautious and prepared for more volatility.
If Ethereum does dip below $3,000 and quickly recovers, it could set the stage for a stronger rally heading into the next phase of the market cycle.
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