Ethereum appears to be entering a pivotal phase as the market stabilizes around a key support level near $3,800. After a period of correction, technical indicators, structural signals, and price action now suggest the potential for a renewed bullish move. Ethereum Slips Below Key $4,060 Support Ted, in a recent update shared on X, pointed out that Ethereum has slipped below its crucial $4,060 support level, a move that may hint at a short-term bearish phase for the asset. This breakdown has drawn traders’ attention to lower support regions, as Ethereum’s next moves will likely determine whether the market stabilizes or faces further pressure. Related Reading: Analyst Says Ethereum Price Might Have Reached ‘Wave 4’ Bottom — Path To $5,000? According to Ted, the next major support sits around $3,800, a level that has recently served as a strong demand zone. If Ethereum fails to defend this region, it could open the door for a deeper correction toward the $3,400–$3,600 range, where a stronger accumulation phase might form. Such a decline would likely shake out weak hands and allow for a more sustainable base to build upon for the next major move. However, Ted also noted a possible bullish scenario where Ethereum could reclaim the $4,060 and $4,250 levels. A successful recovery above these zones could confirm that the recent drop was merely a correction within a larger bullish structure, potentially paving the way for a powerful rally as the market regains confidence. Bullish Structure Confirmed As ETH Holds Key Demand Zone According to Nadezhada on X, Ethereum’s chart is looking increasingly bullish, showing signs of strength after recent market movements. The analyst noted that a Break of Structure (BOS) has been confirmed, signaling that Ethereum may be preparing for its next significant upward move. Related Reading: Ethereum Turns Bullish After Multi-Year Breakout — $7,000 May Be Imminent Nadezhada highlighted a key demand zone between $3,910 and $3,800, which aligns with both a Fair Value Gap (FVG) and an Order Block (OB) on the chart. This area represents a strong region of buyer interest, where liquidity could build up. Thus, maintaining stability within this zone may set the foundation for the next rally. If Ethereum manages to hold the $3,910–$3,800 support area, Nadezhada believes it could act as a springboard for a sharp move toward $4,550 and beyond. Such a rebound would mark a strong continuation of the broader uptrend, with buyers firmly back in control. The crypto analyst concluded by emphasizing that buyers appear to be positioning for the next leg higher, as technical signals continue to align in their favor. With structure, demand, and sentiment converging, Ethereum seems ready to attempt another breakout if market conditions remain supportive. Featured image from iStock, chart from Tradingview.com
