Technical analysis by VaultX_Trader about Symbol ETH: Sell recommendation (12/12/2025)

Ethereum has recently completed a strong upward swing but has now encountered a major Orders Block (OB)/Supply Zone near $3,400. Following a strong push higher, the price has failed to sustain the momentum, showing a clear reversal pattern (often referred to as a "Head and Shoulders" pattern in traditional technical analysis). The current price action indicates that selling pressure is dominating, leading to a projected move toward the lower demand zone. ​Technical Evidence & Market Read ​Orders Block Rejection: Price hit the overhead Orders Block/Supply Zone around $3,400 and immediately reversed. This confirms that institutional selling pressure is active at this level. ​Structural Breakdown: The pattern of price action shows a clear shift: a strong initial pump, followed by lower highs and now the acceleration downward. The current price (around $3,082.7) is trading well below the swing highs, confirming Strong Bearish Momentum. ​Target Liquidity Zone: The clear path of least resistance is now downward, targeting the liquidity zone defined by the prior swing low and the potential FVG/Demand Zone around $2,750 - $2,800. This area represents the next major buying opportunity. ​Actionable Setup: The current position offers a compelling short entry, trading the reversal from the confirmed supply zone toward the high-probability demand zone. Invalidation ​The bearish bias is invalidated if price executes a strong 4H close back into the Orders Block/Supply Zone (above $3,250), which would suggest a renewed bullish attempt.