Ethereum is approaching a critical resistance zone as recent recovery efforts begin to lose momentum. As price action continues to show signs of a corrective structure, attention turns to the possibility of a move back to the lower levels of the range if sellers step in at key resistance.

The HTF range follows the Ethereum TCT distribution model

According to Composite Trader cryptocurrency analyst Ethereum is currently trending on a well-defined higher time frame (HTF) that aligns with the TCT distribution model. This structure suggests that price action may be heading towards a potential bearish rotation, with the broader range remaining intact and guiding market behavior.

The analyst stressed that full confirmation has not yet been achieved as a tidy and high-quality third touch is still required to verify the configuration. This third interaction with resistance is a key element of the model, often acting as a trigger point for a more decisive move towards the lower end of the range.

While awaiting this confirmation, the expert is focusing on lower time frame (LTF) opportunities, particularly short-term accumulation setups that could push the price upwards to the anticipated third tap zone. He further explained that some of his most successful trading sequences come from combining these time frames, capturing profits on the way up through long LTF positions, and then rolling those profits into brief positions near HTF resistance.

By treating the entire process as one continuous sequence rather than separate transactions, it becomes possible to pool profits more aggressively. This strategy is rooted in the concept of “TCT creating TCT”, whereby patterns on lower time frames build into and reinforce structures on higher time frames.

B-Wave’s rebound faces key resistance at $2,332-$2,420

More cryptocurrencies online he noticed that the first major resistance for a potential rebound of wave B is located between $2,332 and $2,420. This zone is expected to act as a decisive barrier where any upward move could be met with selling pressure and determine whether the recovery is forceful or remains corrective.

The analysis shows that the bounce structure is as crucial as the level itself. As long as any move into this resistance area follows a clear three-wave pattern, it would suggest that the market is still in a correction phase. In this scenario, the door remains open to further declines in the brief term before a more significant enhance in economic recovery can occur.

On the other hand, the $2,037 level is considered a key support to watch in the coming sessions. This level, if tested, could act as a stabilization point. Nevertheless, a significant break below this value would enhance the likelihood of a longer correction before the next phase of growth begins.