Ethereum is currently trapped between strong higher-timeframe support and heavy resistance left behind by the recent breakdown.

Bulls must defend the $3.9K base to keep the broader uptrend intact, while reclaiming the $4.2K resistance band would provide confirmation for a continuation move toward the previous highs.

Technical Analysis

By Shayan

The Daily Chart

On the daily timeframe, ETH has pulled back from its recent peak into a critical support confluence, including the 100-day moving average and the ascending channel’s lower boundary around $3.8K. Despite the recent sell-off, the cryptocurrency remains above the 200-day moving average, which continues to serve as a longer-term bullish anchor.

The rejection from the order block near $4,600–$4,700 has left the market vulnerable to short-term downside pressure. However, as long as the price holds above $3.8K–$3.9K, there remains scope for recovery. A sustained daily close back above the order block would likely trigger renewed bullish momentum.

The 4-Hour Chart

On the 4-hour chart, Ethereum sharply declined into the $3,800–$3,900 demand region, which overlaps with the channel’s lower boundary, and quickly attracted buyers. This bounce has lifted the price toward the $4,200 zone, where short-term resistance is now being tested.

Above this level, the $4,300–$4,400 range stands out as the next critical resistance, aligning with the decision point (DP) and key Fibonacci retracements.

A failure to reclaim momentum above $4,200 could force ETH into further consolidation, or even another retest of the $3,800 demand block. Conversely, a clean breakout would pave the way for ETH to revisit higher resistance zones, ultimately targeting the $4,600–$4,700 order block.

Sentiment Analysis

By Shayan

The liquidation heatmap highlights that Ethereum’s recent decline triggered a long squeeze, wiping out a dense cluster of overleveraged positions just below $3,900 before rebounding.

Currently, ETH is pressing against the $4,200 resistance, where another dense liquidity cluster has formed. This zone represents both a hurdle and a magnet for price action. If Ethereum successfully breaks above this area and clears the liquidity overhead, the next major concentration lies above the $4,700 swing highs.

This makes a liquidity sweep of those highs increasingly likely, as the market tends to gravitate toward such pools. In short, while buyers must first absorb the supply at $4,200, the larger liquidity resting above $4,700 suggests Ethereum’s path of least resistance remains tilted upward.

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