Ethereum Breakout Creates New Bullish Structure, But Correction Looms

Ethereum's explosive breakout has created a new bullish structure, but it may not be smooth sailing from here. After surging to $2.55K, the price is pulling back, and analysts are warning of a potential deeper correction.

The daily chart shows that Ethereum has cleared several key resistance zones, including the $1.83K-$1.97K decision-point zone and the $2.07K-$2.15K breaker-block zone. However, the asset is now facing significant resistance in the $2.44K-$2.51K area.

The 4-hour chart provides a clearer picture of Ethereum's short-term expansion, with the price surging from around $1.87K to its current level in just a few sessions. The Fibonacci retracement levels suggest that the $2.07K-$2.21K area could become the primary pullback zone if sellers maintain control.

The one-week Ethereum liquidation heatmap also suggests that there may be a deeper correction ahead, with a notable concentration of liquidation liquidity developing below the current market price.