Ethereum holds $3,700 support amid broader market turbulence and rising volatility
Ethereum is trading near the $3,700 level, testing a critical support zone following a strong correction from the $4,900 resistance area earlier this week. The decline mirrors broader market weakness, as traders reassess risk amid escalating geopolitical and macroeconomic uncertainty.
The daily chart shows Ethereum rejecting sharply from the upper green supply zone near $4,800–$4,900, a region that has repeatedly acted as a ceiling for price action since April. The pullback has now driven ETH into a key mid-range demand zone around $3,650–$3,800, which previously served as a strong base for the July breakout rally.
“Ethereum is currently at a crucial technical crossroads,” one BITX market strategist noted. “If the $3,700 area holds, a rebound toward $4,100 could follow. But if it breaks decisively, we may see a deeper correction into the $3,200 range.”
Volume data supports this view — the latest downswing occurred with elevated trading volume, signaling aggressive profit-taking rather than passive selling. Historically, similar spikes in volume have preceded local bottoms, especially when coinciding with strong horizontal demand zones.
Below current levels, the next major support lies near $3,200–$3,250, marked by a wide grey band that held through early May. A breakdown beneath this range could expose ETH to further downside toward the orange demand zone around $2,200, where institutional buying previously emerged during the March recovery.
“Ethereum remains structurally bullish on higher timeframes,” According to BITX analysts. “As long as ETH stays above $3,200, the uptrend remains intact. However, traders should stay cautious — volatility remains elevated, and liquidity across exchanges is tightening.”
Ethereum’s near-term outlook hinges on the $3,650–$3,800 range. Holding this zone could stabilize sentiment and invite a bounce toward $4,100, while a breakdown may confirm a deeper retracement phase.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.