Ethereum Price Analysis: Key Level at Risk as ETH Faces Critical Phase
An in-depth look at Ethereum's current price movements and the essential support levels that could determine its near-term future.
Ethereum is currently moving within a range as it sustains above important institutional demand levels. Recent consolidation indicates that the next major price action is likely influenced by liquidity changes within this range.
Technical Analysis
Daily Chart
Ethereum is trading within two primary zones: a supply around $4.6K–$4.7K and a demand around $3.4K–$3.5K. After dropping below a crucial trendline support, it recently retested it, confirming this level as resistance.
The asset appears to be in a balanced phase where neither buyers nor sellers dominate. The 100-day moving average, once a support level, now acts as resistance near $4.1K–$4.2K. The 200-day MA near $3.1K remains a critical support.
As long as ETH stays above the $3.4K demand zone, its overall trend remains positive. However, falling below could lead towards the $3.0K–$2.9K liquidity area, where another historically significant support level resides.
Daily Chart
4-Hour Chart
The 4-hour chart indicates a descending wedge following the resistance rejection from around $4.2K. The lower boundary aligns closely with the institutional demand zone, demonstrating a potential compression as volatility is expected to increase soon.
A breakout over the descending trendline, closing above the $4K–$4.1K resistance, may signal a change in trend towards $4.4K–$4.6K. Conversely, a fall below $3.7K risks testing the $3.4K demand zone.
4-Hour Chart
Sentiment Analysis
On-chain metrics indicate a tightening market for Ethereum. Since mid-October, substantial shifts have occurred, including that exchange reserves are notably down, while significant whale transactions dominate the average spot order sizes.
Post-October 15, ETH’s price has stabilized just below the $4K threshold, although market dynamics have shown considerable changes. The presence of whale transactions hints at strategic accumulation by large investors, and thinning liquidity on exchanges suggests that even small demand spikes could impact prices significantly.
Sentiment Analysis
This current dynamic may be reminiscent of previous accumulation periods which led to substantial price rallies. If broader market conditions normalize and institutional investments return, the tightening phase could underpin a new upward trend for Ethereum.
