Ethereum (ETH) is trading at approximately $3,700 as of now, showing a drop of over 4% in the last 24 hours and nearly 11% over the week.

While the immediate momentum appears negative, several analysts consider this a key zone for a potential rebound.

Analysts Eye $3,800 as Crucial Level

Ali Martinez has detailed his “dream scenario” for Ethereum, suggesting that if ETH holds above $3,800 and breaks through the resistance at around $4,900, it could rise to $8,000. His analysis lays out a stepwise approach with potential pauses at $5,600, $6,400, and $7,200.

He stated,

“Ethereum bounces off $3,800, smashes through $4,900, and rockets to $8,000.”

For this to take place, Ethereum needs to clear the $4,900 barrier that has historically limited its rise.

Ali Martinez Chart Source: Ali Martinez/X

Bearish Indicators in Short-Term

Despite the overall bullish setups, short-term trends suggest increasing pressure. The daily RSI stands at 39, indicating weak buying strength, while the MACD indicates a bearish trend with both signal and MACD lines in the red.

ETH Chart Source: TradingView

Ted has remarked that Ethereum is situated in a pivotal area.

“If this level holds, Ethereum could rally towards $4,000 this week. If ETH fails to hold this, expect a drop below the $3,500 zone,” he commented.

Investors are also closely monitoring significant support zones on the ETH/BTC chart that have proven resilient in earlier market cycles.

Michaël pointed out previously that this broader region could be seen as a “perfect buying zone.”

Market Analysis Persists

Traders continue to observe larger patterns that remain intact. Tardigrade illustrated a valid falling wedge on Ethereum’s weekly chart, indicating it could prompt movement soon. Merlijn suggested that ETH’s pattern resembles a previous Bitcoin cycle.

“If the echo continues, ETH is about to rip,” he stated.

Crypto Patel emphasized that ETH still operates within a broad range between $2,560 and $5,760, noting that the MVRV ratio is presently at 1.5, a neutral area historically encountered before significant moves. He described this phase as “the calm before every big move in past cycles.”

On-chain activities reinforce this viewpoint, as Crypto Rand reported that Ethereum stablecoin transfer volume reached a record $2.82 trillion in October, a 45% increase from September.