Ethereum (ETH) is facing a cautious market as its price struggles to recover from recent declines. After rebounding from the $3,700 zone, ETH briefly climbed above $3,750 and $3,800, entering a short-term positive phase. However, resistance near $3,840–$3,850 has slowed the recovery, signaling that buyers are losing control amid cautious market sentiment.
Currently, ETH trades below the 100-hourly Simple Moving Average, emphasizing a short-term bearish bias. Market participants are closely watching key resistance and support levels to gauge Ethereum’s next move.
Resistance Levels Restricting Upside
Ethereum’s immediate resistance stands near $3,845, with a short-term bearish trend line forming around $3,850 on the hourly chart. Breaking above this zone is critical for buyers to regain control and trigger further upside.
The next resistance hurdle lies at $3,920, corresponding to the 50% Fibonacci retracement of the downward move from $4,110 to $3,708. A sustained move above $3,950 could pave the way for gains toward $4,020. If ETH surpasses this level, traders may target $4,120 and $4,150 as potential upside zones in the near term.
These resistance points suggest that Ethereum remains range-bound, with sellers defending higher levels. Analysts note that until ETH decisively breaks above $3,950, upside potential could remain limited.
Support Levels Guarding the Downside
On the downside, Ethereum faces initial support near $3,800. A drop below this level may trigger further selling pressure, with the first major support positioned at $3,740. Breaching this zone could see ETH testing $3,700, a critical psychological level for buyers.
If selling momentum intensifies, the next support targets are $3,650 and $3,620. Maintaining these support levels is crucial for preventing a deeper correction, as any breach could signal renewed bearish sentiment in the market.
Technical Indicators Signal Caution
ETH’s current trading below the 100-hourly Simple Moving Average indicates short-term weakness. Combined with a bearish trend line near $3,850, technical indicators suggest that sellers still hold the upper hand.
The 23.6% Fibonacci retracement level of the $4,110–$3,708 move was briefly breached during the recovery, highlighting that while buyers attempted to regain ground, resistance quickly emerged. Traders are also monitoring the hourly charts for signs of trend reversals or breakout patterns to gauge the strength of the next move.
Market Sentiment Remains Mixed
Ethereum’s market sentiment is currently cautious. While the brief recovery from $3,700 signals some buying interest, the inability to surpass resistance points indicates that sellers remain active.
Traders are evaluating whether this pause reflects a temporary consolidation or a precursor to a deeper correction. Market observers suggest that a decisive move above $3,950 would restore bullish confidence, while a decline below $3,740 could intensify bearish momentum.
Potential Scenarios for Ethereum
Bullish Scenario:
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ETH clears $3,850 resistance and moves toward $3,920.
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A sustained break above $3,950 could target $4,020, followed by $4,120–$4,150 in the near term.
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Positive market catalysts, such as favorable news, increased investor demand, or broader crypto market rallies, may support this bullish trajectory.
Bearish Scenario:
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ETH fails to overcome $3,850 resistance, resulting in a renewed decline.
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Key support levels at $3,800 and $3,740 may be tested.
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A further drop below $3,700 could push Ethereum toward $3,650 and $3,620, signaling increased downside risk.
Conclusion
Ethereum is navigating a cautious market as buyers struggle to overcome resistance levels near $3,850. While a minor recovery has taken place, technical indicators and trend lines suggest that sellers remain in control. Key support levels at $3,800, $3,740, and $3,700 are critical for maintaining stability, while resistance zones at $3,920, $3,950, and above will determine the potential for the next bullish wave.
Traders are advised to monitor hourly charts and key Fibonacci levels closely to gauge Ethereum’s next move. Until ETH decisively breaks above $3,950 or falls below $3,740, market participants should approach trades with caution, balancing potential upside against the risk of renewed downward pressure.
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