Ethereum Faces $2,590 Resistance Ahead of Potential $3,200 Surge

Ethereum is currently trading at a critical resistance zone of $2,590, a level that is significant due to its alignment with the 0.618 Fibonacci retracement and the midpoint of the active Fibonacci-based price channel. This zone is not only a psychological round number but also a technical confluence point, suggesting that Ethereum may temporarily stall at this level before resuming its upward trend.

A potential harmonic pattern, specifically a Butterfly pattern, is forming within the current structure. For this pattern to be validated, a corrective leg C must materialize, which could see Ethereum retrace to the $2,226 support level. This support level is crucial as it converges with high time frame and channel support, providing a solid foundation for a potential bullish continuation into leg D.

The projected target for leg D is the $3,200 area, which aligns with the upper boundary of the price channel and a key high time frame resistance zone. The validity of this scenario will depend on volume and structure. Currently, trading volume is subdued, suggesting that any breakout from the $2,590 resistance level would require a significant increase in buyer interest to be sustained.

In the coming price action, Ethereum is expected to remain bullish on higher time frames. A pullback from $2,590 to $2,226 would be both anticipated and technically beneficial. This move could complete the harmonic structure, setting the stage for a continuation toward $3,200, provided that support holds and volume increases on the next leg higher.