Following last week’s liquidation events, Ethereum is showing early signs of recovery. Despite the recent price drops in the cryptocurrency market, ETH has managed to maintain a crucial support level and target significant resistance zones.

Technical Analysis

Daily Chart

On the daily chart, Ethereum rebounded strongly from the critical $3.4K demand area, aligning with the 200-day moving average. This level has proven to be significant support, and the price surge past the $4K mark indicates that buyers are keen on regaining control.

Ethereum faces resistance in the $4.2K-$4.3K range, where previously disrupted market structures coincide with key Fibonacci retracement levels. If the price manages to close above $4.3K, it could pave the way for further movement towards the $4.6K-$4.7K area.

Ethereum Daily Chart

4-Hour Chart

On the shorter 4-hour timeframe, Ethereum has bounced back above its earlier ascending trendline, turning this level into temporary support. The price now targets the $4.25K Fibonacci retracement zone, while the $4K-$4.1K region serves as a crucial decision point. Staying above these levels indicates ongoing bullish momentum.

Sentiment Analysis

Recent data from Binance indicates that last week’s crash resulted in a substantial liquidation cluster between $3.4K and $3.6K. This phase acted as a cleanse for the market, potentially setting up for more stable growth. The absence of significant liquidity below the current price suggests the market is poised for a cautious recovery.

As Ethereum strives to overcome its resistance at $4.3K, the market sentiment appears favorable, which could lead to higher price targets in the near future.

Binance Liquidation Heatmap