Ethereum Faces Bearish Pressure After 0.618 Fibonacci Rejection

Ethereum price action is displaying clear local weakness, with signs pointing toward a potential rotation back to high-timeframe support at $3,385. The recent rally failed to break above the prior swing high, instead forming a lower high — a signal of fading bullish momentum.

The rejection at the 0.618 Fibonacci retracement was accompanied by increased bearish volume, confirming that sellers have regained control in the short term. Price is now testing local support around $3,900, a crucial level that must hold to avoid triggering a deeper corrective phase.

Key Points:

- Rejection Zone: Ethereum was rejected at the 0.618 Fibonacci, confirming local weakness.
- Lower High Formation: Indicates loss of bullish structure and potential trend reversal.
- Critical Supports: $3,900 (local) and $3,385 (high timeframe) are the key downside levels to
watch.

From a structural perspective, Ethereum’s inability to sustain momentum signals growing bearish pressure across lower timeframes.

What to Expect:

If $3,900 fails to hold, expect ETH to rotate toward $3,385 support. However, reclaiming and closing above the 0.618 Fibonacci could invalidate the short-term bearish setup and reintroduce upside potential.