Is Ethereum Setting Up for a Major Reversal or Another Breakdown?

$ETH  continues to trade inside a clear daily downtrend, but the chart is quietly building two major levels that could define the next directional move.

Bearish Setup, Sell the Rally?

A key daily supply zone at $3,250–$3,350 remains untested.

This is the origin of the last aggressive sell-off, and liquidity is stacked above recent highs.

If it rallies into this premium zone, it may deliver a textbook short opportunity.

Bullish Setup, Buy the Sweep?

Major liquidity sits beneath the current range, especially around $2,600–$2,700, where an unmitigated daily demand zone waits.

A sweep into this level could trigger a strong bullish rebound if displacement follows.

Decision Point:

ETH is compressing between supply and demand, traders are watching which side gets hit first.

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