Ethereum has reclaimed the $2,249-$2,253 area, invalidating an earlier bearish setup, but it has run into sellers overhead as rallies approach the upper end of the range. Each push higher is meeting resistance near $2,258, leaving Ether back in a familiar structure: range-bound, but now testing the top of the box where rejection can travel quickly. The market is therefore balancing a bullish reclaim against a still-intact supply zone.
The key levels define that balance closely. Resistance is identified around $2,240, with a break opening a move toward roughly $2,258, while a loss of about $2,203 would start to undermine the reclaim. At the same time, leverage has increased sharply. Open interest climbed more than 19% over the last day to about $5.4 billion, and funding was running above 4% annualized.
That combination creates a more unstable setup than the headline price move alone suggests. Failed shorts have been cleared out beneath the market, yet the rallies are still being sold into near the highs. The script also notes more than $11 million in liquidations, with short sellers on the wrong side of the latest move, but that pressure has still not translated into a clean break to new highs.
The implication is that Ethereum is running hot on leverage while remaining undecided on direction. If it can hold above $2,261 while participation persists, the market would have a stronger case for trend continuation. If not, the same leverage that helped propel the rebound can turn into forced selling, turning the reclaim back into another sharp reversal.