Is Now the Right Moment to Invest in Ethereum (ETH)? Key Support Levels Are Tested
Ethereum is currently testing crucial support around $3,700. Analysts are optimistic about a potential reversal, particularly with futures reaching historic highs and a decline in exchange supply.
Ethereum is currently trading around significant levels that analysts consider beneficial for long-term investments. The market is closely monitoring how the price reacts to key support levels as trading volumes remain vibrant.
Ethereum at Weekly Support Level
Ethereum is testing the support level around 0.0325 BTC in the ETH/BTC trading pair. This threshold coincides with the 20-week moving average, which has historically served as a robust support level. Analyst Michaël van de Poppe referred to it as an “ideal zone for buys” and emphasized that ETH is positioned favorably for investment.
Recently, Ethereum retracted after achieving a peak in its latest rally. Despite this, price charts continue to reveal higher lows and higher highs. The Relative Strength Index (RSI) remains above 50 with no substantial changes in volume, suggesting that if support holds, this pullback might be short-lived. Van de Poppe reiterated:
“Corrections don’t last forever.”
Ethereum Price Chart
Source: Michaël van de Poppe/X
Support Retention in USD Pair
ETH is currently valued at $3,850, down about 2% today and 3% this week. The token recently rebounded from the $3,700 support level, which has established itself as the current range’s lower bound.
Analyst Lennaert Snyder mentioned:
“ETH bounced from the $3,700 rangelow. I’m tracking ~$3,937 for short positions post-failure and long positions post-gain.”
Constructively, a symmetrical triangle is forming on the ETH/USDT chart, with the price approaching the lower bound of this formation. A breakdown from here may bring further selling pressure, whereas a bounce could maintain ETH within the existing range.
Exchange Flows and Futures Activity
As reported by CryptoPotato, over 200,000 ETH were withdrawn from exchanges in just 48 hours earlier this week. This transaction likely minimized short-term selling pressures, though it may simply be an internal adjustment between exchange accounts.
Simultaneously, open interest on CME ETH futures has surged to 2.25 million contracts, marking an all-time high. This broad participation across different contract expirations indicates growing institutional interest in Ethereum through regulated marketplaces.
