Ethereum price remains above the $3,700 level as the market structure suggests the development of a reaccumulation range between $3,700 support and higher timeframe resistance around $4,240.
summary
- Ethereum is bullishly defending key supports and holding steady above $3,700.
- Price trends suggest that an equilibrium range is developing between $3,700 and $4,240.
- A sustained decline could set the stage for the next big bullish break.
Ethereum Price (ETH) price continues to show resilience after defending the key volume support at $3,700. The recent rally from the region was accompanied by bullish engulfing candlesticks, indicating renewed buying interest after a volatile correction. This reaction occurred after utilizing the 200-day moving average, which acts as dynamic support.
Adding to this strength, BitDigital’s recent purchase of over 31,000 ETH highlights the institution’s growing confidence in Ethereum’s long-term prospects. Overall, Ethereum’s price movement suggests that a re-accumulation range may be forming, laying the foundations for the next big move.
Important technical points of Ethereum price
- Main support: $3,700 is in line with the value area low and 200-day moving average.
- Main resistance: $4,240, higher time frame resistance that defines the upper end of the potential range.
- Market structure: The evolution of the equilibrium phase indicates the possibility of re-accumulation between support and resistance.
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ETHUSDT (1D) chart, source: TradingView
Ethereum’s price movement over the past week has highlighted a clear defense of the $3,700 zone, an area that coincides with both volume support and the lower bound of the value area. The initial rejection from the region triggered aggressive buybacks, creating a strong bullish engulfing candlestick and re-establishing short-term market bias in favor of the bulls.
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This defense coincided with a technical confluence around the 200-day moving average, a key trend indicator that has historically served as an axis between bullish continuations and correction phases. The successful retest and recovery above this level reflects the market’s willingness to maintain support despite the broader volatility seen in recent trading.
From a technical perspective, Ethereum appears to be stabilizing within a developing range structure and could extend between $3,700 and $4,240. This structure suggests the formation of an equilibrium zone, a pattern often observed before large directional breakouts.
Such a formation allows support and resistance to dynamically converge, allowing liquidity to build at both ends of the range before a definitive expansion occurs.
What to expect from future price trends
If Ethereum sustains above $3,700, the market could experience a period of low-volatility consolidation before testing higher resistance levels. A confirmation above $4,240 would signal renewed bullish momentum and could signal the next stage of a broader uptrend.
Conversely, failure to hold $3,700 could invalidate this reaccumulation scenario and open the door to a deeper retracement into lower value territory.
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