Ethereum Price Eyes $3.4K As Bull Trap Risk Lingers

Ethereum Price has captured renewed attention as it moves toward the key $3.4K level, but several signals suggest that caution may be necessary. Traders see upside potential driven by improving structure and reduced exchange supply, yet the overall demand profile remains uncertain. As a result, the market faces a mix of optimism and doubt, making the next move especially critical for short-term and long-term participants.

The 1-month Ethereum chart highlights how price action has consolidated within a tightening range while attempting to build upward momentum. The recent recovery phases show a series of higher lows, reflecting cautious buying interest despite broader market hesitation. Short pullbacks on the chart also suggest that traders remain sensitive to resistance zones, especially as ETH approaches the $3.4K region. Overall, the chart reinforces the ongoing battle between strengthening structure and weak volume, aligning with the current mixed outlook for Ethereum.

Ethereum Price Momentum Builds

Ethereum has seen a steady upward move over recent weeks, recovering from previous lows and demonstrating improved market strength. The asset recently gained more than 18 percent over a three-week period, sparking discussions about a possible continuation toward higher resistance zones. Some analysts argue that ETH still appears undervalued near the $3,000 range, pointing to long-term fundamentals and the broader developmental progress of the network.

One supportive element is the declining amount of Ethereum held on exchanges. When exchange balances fall, it often implies that investors are choosing to hold their assets in private wallets rather than preparing to sell. This trend suggests a gradual shift toward accumulation, even if the overall market sentiment is not yet strongly bullish.

Ethereum’s ongoing technical and structural upgrades are also influencing market optimism. Recent improvements were designed to encourage increased activity on layer-2 networks while reducing congestion and fees on the main chain. As more transactions settle on Ethereum while computation shifts to layer-2, the network may become more efficient, appealing to both developers and users. These advancements strengthen Ethereum’s long-term position, even if the short-term price remains volatile.

Technical Factors Shaping Ethereum Price Outlook

From a chart perspective, Ethereum maintains a bullish structure on the weekly timeframe despite past pullbacks. The price previously dipped below the $4.2K region but later rebounded strongly from a demand zone near $2.7K. This recovery revealed that buyers remain active, especially when prices retreat into key support areas. On the daily timeframe, ETH recently broke above a local high around $3.1K, reinforcing the bullish structure and opening a potential path toward the $3.4K target.

However, positive structure alone is not enough. Volume indicators and momentum tools have not matched the enthusiasm suggested by price movement. The Relative Strength Index, commonly used to measure buying pressure, remains below levels typically associated with strong bullish control. Meanwhile, the On-Balance Volume indicator has not shown a meaningful increase, implying that price rises have not been supported by convincing inflows.

This imbalance between price action and demand could weaken the sustainability of the current move. Traders often look for alignment between volume and direction, and the present divergence creates room for potential reversals.

Resistance Levels That Could Halt Ethereum Price

The next major obstacle lies in the supply zone between roughly $3,370 and $3,660. Historically, this region has triggered strong reactions from sellers, and a failure to break above it could shift momentum. If Ethereum approaches this level with weak volume or slowing demand, the probability of rejection increases.

On lower timeframes, there is a smaller demand zone around $3,014 to $3,086. If tested, this area may provide the liquidity needed for another attempt toward $3.4K. However, this pocket of demand currently lacks clear volume support, which means any rebound from it could be short-lived without renewed interest from buyers.

Market sentiment also plays a significant role. Bitcoin remains below several major psychological levels, limiting confidence across the broader market. Until Bitcoin shows stronger directional conviction, many traders may hesitate to rotate aggressively into altcoins, including Ethereum. This cautious environment reduces the likelihood of runaway rallies and increases the risk of slow or failed breakouts.

Key Signals Traders Should Monitor

Ethereum Price and Volume Confirmation

For Ethereum to push beyond $3.4K and sustain momentum, traders need to see stronger buying volume. Rising OBV levels and a daily close with increasing market participation would help confirm bullish intent. Without this support, upward moves may become unstable.

Behavior Around High-Risk Zones

The supply zone between $3.37K and $3.66K remains the most important resistance. A clean breakout, followed by a retest and consolidation above this region, would greatly improve the bullish scenario. In contrast, a sharp rejection may lead to a renewed drop, possibly sending ETH back into the lower $3K range.

On-chain Signals and Broader Sentiment

Although Ethereum’s upgrades enhance the network’s economic model, on-chain activity remains relatively muted. For sustained price growth, network usage typically needs to rise alongside investor confidence. If activity continues to lag, fundamental improvements may not immediately translate into higher prices.

Likewise, macroeconomic conditions and overall crypto sentiment remain influential. Risk-off environments reduce liquidity and make it harder for assets like Ethereum to break through major resistance levels.

Final Thoughts on Ethereum Price Trajectory

Ethereum Price is currently positioned at a delicate point in its market structure. The recent rally highlights the possibility of extended upside, especially with structural improvements, declining exchange supply, and positive weekly alignment. However, weak demand metrics and cautious sentiment introduce the possibility of a bull trap, in which price rises lure buyers before reversing sharply.

Traders should remain observant of volume trends, key demand and supply zones, and broader market behavior. While a move to $3.4K appears achievable, sustaining levels beyond that point will require stronger participation and clearer confirmation across technical and on-chain indicators. Until these conditions emerge, caution remains a reasonable stance.

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