ETH Price Action Signals Critical Technical Levels
Ethereum’s price is attempting to stabilize after a sharp decline, with the $3,850 support level emerging as a pivotal zone for short-term direction. At the time of writing, ETH trades near $4,015, showing a modest rebound following several sessions of heavy selling pressure.
The 4-hour chart highlights a clear sequence of lower highs, confirming a recent downtrend from the mid-September peak near $4,900. After breaking below key resistance zones around $4,400 and $4,200, Ethereum finally found buyers in the highlighted green support band between $3,800 and $3,850. “This area aligns with previous accumulation zones where traders historically stepped in to defend price,” noted BITX market analyst.
Trading volumes increased as ETH approached this floor, suggesting that buyers are actively protecting the $3,850 level. According to BITX cryptocurrency strategists, “A strong bounce from this region could set the stage for a retest of the $4,150 and $4,400 resistance levels, but failure to hold could expose Ethereum to deeper losses toward $3,500.”
Above the current market price, the first technical target lies near $4,150, a level that previously served as both support and resistance. Clearing this barrier would strengthen bullish sentiment and potentially open the path to the next supply zone around $4,400–$4,600, where sellers have repeatedly defended in recent months.
For now, the ability to remain above $3,850 will determine whether Ethereum can shift momentum back to the upside. Short-term traders are closely monitoring the formation of higher lows as an early sign that selling pressure is fading. “Consolidation above $3,850 could encourage a stronger relief rally, but any decisive break lower would likely invite fresh short positions,” another expert commented.
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.