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  • Ethereum price is trying to slice through a significant supply barrier.
  • If successful, ETH could rise by 25% toward $3,400.
  • However, a rejection from the overhead resistance may lead to a downswing to $2,100.  

Ethereum price looks primed to retrace as the overhead resistance seems to have the strength to trigger a rejection.  

Ethereum price might retrace

Ethereum price  is currently struggling with  a supply zone that extends  from $2,689 to $2,843.

A rejection at this resistance barrier will push Ethereum price down to the weekly open at $2,383, representing an 11% downswing. If the buyers fail to defend this level, ETH will slide to the immediate support at $2,101, which coincides with the previous week’s opening price.

Investors could then expect Ethereum price to  reverse  here and surge by 25% to the supply zone’s lower trend line at $2,689.

ETH/USD 6-hour chart

ETH/USD 6-hour chart

However, if the May 19 swing low at $1,850 is breached,  the short-term bullish  outlook would be invalidated. In that case, a spike in selling pressure will  trigger a consolidation for  Ethereum  price where it could slide to the immediate support level at $1,730.