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 recent price action now hint at the potential for a renewed bullish surge.
Ethereum Slips Below Key $4,060 Support, Eyes $3,800
In a recent market update, analyst Ted pointed out that Ethereum (ETH) has slipped below its critical $4,060 support level, potentially signaling a short-term bearish period. This breakdown has redirected traders' attention to lower support regions, with the next major anchor identified around $3,800. This $3,800 mark has historically proven to be a strong demand zone. Should Ethereum fail to maintain this level, it could trigger a deeper correction towards the $3,400–$3,600 range, where a more robust accumulation phase might form. However, Ted also highlighted a plausible bullish scenario. If Ethereum manages to reclaim the $4,060 and $4,250 levels, it would solidify the notion that the recent price dip was merely a correction within a broader bullish structure. Such a recovery could pave the way for a powerful rally as market confidence re-engages.
Bullish Structure Confirmed As ETH Holds Key Demand Zone
Echoing this cautiously optimistic sentiment, analyst Nadezhda on X noted that Ethereum’s chart is showing increasingly bullish signs, demonstrating resilience amidst recent market fluctuations. A confirmed Break of Structure (BOS) suggests that ETH is gearing up for its next significant upward movement. Nadezhda identified a crucial demand zone between $3,910 and $3,800, aligning with both a Fair Value Gap (FVG) and an Order Block (OB) on the chart, indicating substantial buyer interest. Sustaining stability within this zone is vital for establishing a solid foundation for the impending rally. If Ethereum successfully defends the $3,910–$3,800 support, it could springboard towards $4,550 and beyond, firmly placing buyers back in control of the market's direction. The converging technical signals, coupled with strong demand and positive market sentiment, suggest that Ethereum is strategically positioned for its next upward leg. Should supportive market conditions persist, ETH appears ready to attempt another breakout.
