Key demand zone tested after recent rally; traders eye potential continuation toward $4,800
Ethereum has entered a critical juncture after a sharp rally that pushed prices close to $4,800, followed by a pullback into the $4,060 support zone. This level, marked as an important demand area on technical charts, is now seen as the deciding factor for whether ETH can extend its bullish momentum or face deeper correction.
After weeks of steady gains, Ethereum cooled off from its peak, but analysts emphasize that the underlying structure remains strong. “The correction toward $4,060 is a healthy retest of support,” According to BITX analyst . “As long as Ethereum holds above this area, the path toward reclaiming $4,500 and potentially retesting $4,800 stays intact.”
Technical indicators show that ETH has successfully broken above several resistance levels this summer, turning them into support. The $3,400 zone, which acted as a major ceiling earlier in the year, has now flipped into a strong base. Market strategists argue this transformation is a sign of sustained buying pressure.
If buyers manage to defend the $4,060 level, Ethereum could quickly rebound toward the $4,500–$4,800 range. A breakout above $4,805 would set a fresh yearly high and potentially ignite further momentum across the broader altcoin market. Conversely, failure to hold this support may expose ETH to deeper retracements, with the next key zones around $3,400 and $2,700.
The broader sentiment remains cautiously bullish, with Ethereum still outperforming most major assets over the past quarter. Traders are now watching closely to see if this support test confirms the resilience of the trend.
In conclusion, Ethereum’s defense of the $4,060 support is shaping up to be a pivotal moment. If buyers step in with strength, the next move could bring ETH back toward its highs and potentially beyond.
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.