Ethereum's continuous sideways movement around 3110 has left many puzzled—Is this a buildup before a breakout, or a trap before a decline?

From a technical perspective, since the retracement from the high of 3308, each rebound's high has been gradually decreasing, and the trading volume during these rebounds has also significantly shrunk. This indicates that the bullish momentum is weakening. If the price cannot effectively break above the resistance at 3160 during this consolidation, caution should be exercised as it may evolve into a bearish continuation—meaning this could just be a brief pause within a downward trend.

The battle near key resistance levels often signals an impending turning point. When the battle between bulls and bears intensifies in mainstream assets, the market tends to diverge. Some funds begin to seek out niche sectors that are less correlated with short-term macro sentiment and are mainly driven by community consensus. For example, tokens within the Ethereum ecosystem that have recently maintained popularity derive their vitality more from community engagement rather than short-term price fluctuations.

What are your thoughts on the current sideways trend? Will it break upward or turn downward? Feel free to share your technical insights in the comments.