ETH price tests major demand area after recent correction, signaling possible rebound if buying pressure sustains
Ethereum’s price is holding steady above the $3,850 support level, suggesting that the market may be entering a critical decision zone following weeks of downward pressure. The chart shows ETH trading within a consolidation structure after failing to break above the $4,970 resistance, while buyers are attempting to defend the green demand zone that stretches between $3,800 and $3,500.
After an extended rally earlier this year, Ethereum (ETH/USD) faced consistent selling near the $4,900 region, forming a double-top structure. The subsequent decline brought prices down toward the current range, where trading volume has begun to stabilize.
According to on-chain and market structure analysis, the $3,800–$3,500 area represents a strong liquidity zone, historically linked with large institutional accumulation during past cycles. A sustained close above this level could validate it as a long-term support base for the next bullish phase.
BITX Technical analysts believe that Ethereum’s next major move will depend on how price reacts around this region. “The $3,800 zone is where short-term sentiment will shift,” one market strategist said. “If bulls manage to maintain momentum above it, we could see a push toward $4,200, followed by a retest of $4,700–$4,900 resistance.”
However, a clean breakdown below $3,800 would expose ETH to deeper retracement levels near $3,300–$3,200, marked by a secondary orange support block visible on the chart.
Market watchers point to a potential reaccumulation phase, as volume remains moderate and selling appears to be losing strength. “Ethereum’s reaction around this key demand area will likely determine the tone of the final quarter of 2025,” According to BITX analysts.
For now, Ethereum remains technically bullish above $3,850, but traders are watching for confirmation signals before re-entering aggressive long positions. A decisive rebound from current levels could set the stage for another rally toward the yearly high if market sentiment improves across the crypto sector.
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.