Ethereum price confirms the failed bearish auction near $3,300, indicating acceptance below resistance, increasing the risk of a deeper corrective move towards lower support.
summary
- The $3,300 rejection confirms the failure of the auction and bull trap.
- Acceptance below resistance increases downside risk.
- $2,680 emerges as the next important support to watch.
Ethereum (ETH) price is showing fresh technical weakness after failing to regain the $3,300 resistance zone on a closing price basis. What initially appeared to be a bullish breakout has now been invalidated and the price has quickly returned below the resistance level.
This type of price action is commonly referred to as an auction failure, or bull trap, and often precedes further declines as trapped long positions are forced to unwind. The latest rejection strengthens the bearish bias within Ethereum’s broader market structure and shifts focus to lower timeframe support levels.
ethereum price Important technical points
- $3,300 – High merging resistance and failed breakout zone
- Value Area High (VAH) – Acts as a major supply barrier
- $2,680 – High time frame support and downside rotation target
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ETHUSDT (4H) chart, source: TradingView
Ethereum’s attempt to rally above $3,300 lacked follow-through and was quickly met with aggressive selling. Importantly, the price failed to break above the resistance level on a closing price basis, confirming that buyers were unable to establish acceptance at higher levels. This is a key feature of a failed auction, where the price briefly trades above the price, then declines below the price and is rejected.
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Rejection is especially important from a volume profile perspective. The high of the value area converges with the $3,300 resistance, forming a dense supply zone where sellers are consistently regaining control. When prices are rejected from such high confluence regions, it often indicates that the market has decided that higher prices are currently not sustainable.
A quick break below resistance suggests value acceptance rather than a simple liquidity sweep. In market auction theory, acceptance below resistance usually leads to a continuation in the direction of rejection, in this case lower. This behavior increases the likelihood that price will rotate to the other side of the range in search of balance.
Market structure further supports this view. Ethereum continues to make new highs and maintains a corrective structure rather than moving into an impulsive uptrend. Every attempt to move higher has been met with selling pressure, indicating that bullish momentum remains weak and more reactive than proactive.
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The auction failure also highlighted the existence of a trapped long position above $3,300. If the price continues to trade below this level, these positions will face increasing pressure and the downside movement may accelerate as stop losses are triggered and positions are unwound. This dynamic often results in a correction phase that is more rapid than initially expected.
Why is $2,680 attracting attention now?
With the resistance firmly holding, attention now shifts to the next major support high near $2,680. This level represents an important structural area where ex-ante demand can emerge and prices can rebalance after an auction failure.
From a liquidity perspective, a move towards $2,680 would allow Ethereum to clear out the static liquidity that had accumulated below the current price point. Markets often gravitate towards such areas after a failed breakout, as they represent areas of unfinished business.
A test of $2,680 would not necessarily signal a macro breakdown, but rather a continuation of Ethereum’s correction phase more broadly. However, failure to maintain this support on a closing price basis will significantly increase downside risk and open the door to a deeper retracement.
What to expect from future price trends
Downside risk remains high as long as Ethereum remains below the $3,300 resistance and the high of the value area. The confirmation of the auction failure increases the possibility of a rotation move towards $2,680, and the price may aim for stabilization.
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