Ethereum is once again testing the strength of a key support band around the $3,700 zone, a level that has served as an important lifeline for bulls in recent months. Even if I repeat it, it will weaken rejection Speculation is rife around the resistance level that buyers could step in and spark a new rally, or that a deeper correction may be on the horizon.
ETH withdraws after receiving Golden Pocket rejection
In the latest market update, Luca said: insight Regarding Ethereum’s current technical setup, he noted that the asset recently faced a rejection in the high timeframe resistance zone that he highlighted in his previous analysis. This rejection coincides with a golden pocket between the Fibonacci point of interest (POI) of 0.5 and 0.618. Following this rejection, Ethereum price retreated into a wider cumulative range marked in green on the chart.
According to Luca, this accumulation zone has acted as a strong reversal area in recent months, providing important support whenever price corrections intensify. This also coincides with the weekly bull market support band, reinforcing its importance. potential The turning point for Ethereum’s next big move.
Nevertheless, analysts warned that the current market structure seems prone to collapse. Luca emphasized that while he remains optimistic about Ethereum’s long-term potential, he intends to remain objective by hedging some of his spot holdings in the event of a confirmed failure. He believes that doing so will reduce downside risk while preparing capital to return to the market. market Once a more sustainable bullish reversal emerges.
Luca concluded by reiterating an adaptive trading strategy that emphasizes a balance between flexibility and discipline. By maintaining a moderate cash position and exposure to defensive assets, we protect capital during periods of market volatility while enabling us to act quickly when clear opportunities arise.
Ethereum maintains midrange support zone between $3,600 and $3,700
According to According to GrayWolf6, Ethereum is currently trading within a defined range between $3,900 and $3,100, with the price recently hitting a mid-range support area around $3,600 to $3,700. He noted that the Stochastic RSI is sending a bullish signal, suggesting a potential short-term rebound from this zone as buyers begin to return. momentum.
GrayWolf6 further explained that ETH reached $4,250 just a few days ago, so it remains possible for it to move towards the upper bands again. If the price regains strength, the next upside price target could extend to around $5,200.
Despite this optimistic outlook, analysts cautioned that Ethereum remains confined to a lower range, with downside risks remaining around $3,100. He said he had taken profits on his previous short position and was now closely monitoring any signs of a rebound from this intermediate position. support level. For him, the strategy is stable, risk managed, positions hedged and patiently waiting for the next move.
Featured image from iStock, chart from Tradingview.com
