Ethereum is trading just below $3,900 as of the latest update, having shown a minor increase over the previous 24 hours. The market has experienced a minor pullback of 3% in the past week, yet analysts assert that the overall conditions remain promising, supported by long-term price patterns and exchange activities.

Ethereum Positioned in the ‘Still Cheap’ Zone

Derived from the insights shared by Merlijn The Trader, the Ethereum Rainbow Chart indicates that ETH is in the “Still Cheap” zone. This particular band is situated beneath historically significant levels termed “HODL” and “Take Profit”, which have frequently indicated overvalued conditions during earlier cycles.

Merlijn stated,

“Every major bottom displays the color blue. Every peak is marked red… Currently? ETH remains in ‘Still Cheap’ territory.”

The historical data from this chart suggests that Ethereum is not priced excessively and could still have potential for further appreciation.

Ethereum Chart Source: Merlijn The Trader/X

Breakthrough Confirmed After Extended Rejections

Recently, Ethereum has surpassed a resistance level that has held firm since November 2021. Following several rejections in earlier cycles, ETH successfully closed above this trendline and is currently testing it again as a support level. Analyst EtherNasyonaL remarked:

“@EtherNasyonaL: The retest has been completed; now it’s time to surge.”

This shift indicates that Ethereum is transitioning from a phase of rejection to one of retesting.

Monitoring Short-Term Levels

In terms of immediate movements, analysts urge caution. Ali Martinez predicts that if ETH cannot regain the $4,100 mark, it may slide back towards $3,700, highlighting the price resistance at $4,100 as a focal point for future bullish validation.

“Ethereum looks prepared to dip back toward $3,700!” — Ali (@ali_charts)

Conclusion

Despite witnessing a supply shift, Ethereum’s price has maintained near recent highs, indicating stable demand at these levels. As the market watches these patterns closely, the results from Ethereum’s price analysis could signal a robust rally continuing into higher levels.