The price of #ETH# continues the rise it started from the low of 3.353 $ and has now tested the 4.066 $ zone. This is an important zone both psychologically and technically, as you can see from the red order bars on the right, this level has significant selling liquidity.

What does this mean? The upward movement has so far been fueled by a search for liquidity, but now the price is facing sell orders from major players in a zone. So here we will either see strong selling pressure or if significant buying comes in, it will clear this zone and continue on its way.

If it is rejected from here, the first zone that could work as support below is between 3,850 – 3,880 $. Because there are previous volume clusters and order density in this zone. However, if a breakout occurs, the next targets could shift towards higher liquidity clusters.

In summary: the price is currently climbing above the liquidity. This is an important threshold for reversal or breakout. The direction of the reaction in this zone will determine the structure of the upcoming algorithm.