Key Retest for Ethereum: Bounce or Breakdown?

In today’s technical analysis, let’s focus on Ethereum, which has just completed a significant technical move. After weeks of sideways consolidation inside a rectangle formation that began in mid-May, the price has broken out to the upside, providing a strong signal of bullish intent.

However, the real test lies just ahead.

Ethereum is now approaching the upper boundary of the rectangle, a level that previously acted as resistance. This area now becomes a key support zone, and how the price reacts here could set the tone for the days ahead.

If Ethereum successfully retests this broken resistance as support—especially with a classic liquidity sweep beneath it—this could invite a fresh wave of buyers and solidify the bullish breakout. In this scenario, the bounce would serve as confirmation of a trend continuation.

On the other hand, if the price falls back below the rectangle, that would strongly suggest a false breakout, turning the sentiment negative and triggering a short signal for traders eyeing downside targets.

For now, Ethereum stands at a decisive crossroads. Traders should closely watch how price action develops around this critical retest level.

Source: https://www.axiory.com/analytics/technical-analysis/key-retest-for-ethereum-bounce-or-breakdown