Ethereum shows conflicting signals: the Golden Zone holds but the Doji raises alarm bells

Ethereum is moving around $3,200 with the daily chart showing an evening doji star pattern potentially dangerous. After a strong bullish candle followed by an indecisive doji and then a decisive bearish candle, the formation suggests that buyers are losing control after a rapid upward push. This sequence of three candles often represents the critical moment when buyers exhaust their momentum and sellers take the initiative again.

The setup appeared after ETH rose from late November lows in the $3,400 to $3,500 zone. The long white candle demonstrated strong momentum, but the subsequent doji revealed an opening and closing at nearly the same level, a classic sign of market uncertainty. The following session generated a solid black candle that returned into the previous range, confirming decisive seller intervention.

However, while the doji pattern serves as a warning, the underlying structure still offers solid technical supports. ETH continues to stay above the Fibonacci retracement at 0.618 around $3,224, exactly in the golden zone, an area that frequently acts as a decision point after strong market movements. The intermediate level of the golden zone is around $3,256, while the 0.5 level is near $3,535.

The rebound along the short-term upward trendline at the start of the week is an encouraging sign. The movement was preceded by a clear bounce from the demand zone between $3,048 and $2,877, which marked the recent decline’s low. Since then, ETH has formed progressively higher lows, indicating the first coordinated change in structure since the October crash.

The RSI indicator is near 54, showing that momentum is shifting from oversold conditions toward a neutral-positive state. This movement is consistent with early reversal phases, although true acceleration has not yet been reached. Volume remains stable rather than speculative, suggesting that the move is built on sustained participation rather than short-term emotional spikes.

Testing the 50-day exponential moving average, around $3,310, is a critical level to watch. A daily close above this point would place the price above both the midpoint of the golden zone and the trendline, strengthening the hypothesis that a reversal is already underway.

If ETH surpasses $3,300 with volume continuity, the structure opens the path toward $3,535, the next significant Fibonacci level. A decisive break of that level would confirm a full rebound from the retracement zone and could extend the move toward the previous resistance cluster near $3,850.

Meanwhile, as long as the price remains above the support band near $3,100, the evening doji star pattern acts as a warning that bullish momentum is losing strength, rather than guaranteeing a definitive trend change. Traders are now closely watching how ETH behaves around these critical supports to determine whether the market is digesting recent gains or about to start a deeper correction.

The current technical situation reflects a tension between two forces: the support of the Fibonacci golden zone holding the price from below and the doji pattern warning of a possible bullish exhaustion from above. The outcome of this battle will determine Ethereum’s next significant moves in the short to medium term.