Ethereum treasury demand collapses: Will it delay ETH’s recovery to $4K?

💡 DMK Insight

Ethereum’s struggle at $3,200 is a critical juncture for traders right now. With current prices around $3,194.94, the overhead resistance between $3,100 and $3,200 is proving tough to crack. This level has historically acted as a ceiling, and the recent collapse in treasury demand suggests that bullish momentum may be waning. If Ether can’t break through this resistance soon, we could see a pullback towards the $3,000 mark, which would be a key level to watch for potential support. On the flip side, a decisive move above $3,200 could trigger a short squeeze, pushing prices toward the $4,000 target. Traders should keep an eye on volume indicators and the RSI for signs of momentum shifts. If we see a spike in buying volume while the price approaches $3,200, that could signal a breakout. Conversely, if selling pressure increases near this resistance, it might be wise to consider short positions or tighten stop-loss orders to manage risk effectively.