Ethereum (ETH/USDT) – Critical Support Test Ahead
Ethereum is currently under pressure after breaking below the $4,000 support. The next significant level to watch is the $3,760 zone, which is not only a strong technical support but also aligns with the Elliott Wave 4 bottom as well as a key Fibonacci retracement area.
Key Scenarios
1. Bullish Recovery (Primary Expectation)
If ETH holds above the $3,760 support, we can expect consolidation in the range of $4,000 – $4,350.
This zone is likely to act as a base for Ethereum until broader market conditions stabilize.
Once momentum returns, ETH has the potential to resume its upward trend.
2. Bearish Breakdown
If ETH fails to defend $3,760, then deeper downside levels may come into play:
$3,450
$3,270
$3,000
This would represent a sharp and aggressive downturn. While possible, this remains weak scenario, given how violent the move would be.
Why the Answer Lies Outside ETH’s Chart
The real driver here isn’t just Ethereum—it’s the total "crypto market cap excluding BTC" as I have warned 2 days ago that's it's falling into a correction
The altcoin market cap is currently in correction as capital flows back into Bitcoin dominance, which has already broken its downtrend line and reached today 59%.
If the altcoin market cap holds its critical support and BTC dominance starts dropping, we can expect a broader bullish recovery across altcoins, with Ethereum following.
If that support breaks, then the weaker bearish scenario may unfold.
Conclusion
For now, the $3,760 support remains the critical line in the sand. Holding it keeps Ethereum within a bullish recovery path. Breaking it could open the door to deeper corrections.
Ethereum is currently under pressure after breaking below the $4,000 support. The next significant level to watch is the $3,760 zone, which is not only a strong technical support but also aligns with the Elliott Wave 4 bottom as well as a key Fibonacci retracement area.
Key Scenarios
1. Bullish Recovery (Primary Expectation)
If ETH holds above the $3,760 support, we can expect consolidation in the range of $4,000 – $4,350.
This zone is likely to act as a base for Ethereum until broader market conditions stabilize.
Once momentum returns, ETH has the potential to resume its upward trend.
2. Bearish Breakdown
If ETH fails to defend $3,760, then deeper downside levels may come into play:
$3,450
$3,270
$3,000
This would represent a sharp and aggressive downturn. While possible, this remains weak scenario, given how violent the move would be.
Why the Answer Lies Outside ETH’s Chart
The real driver here isn’t just Ethereum—it’s the total "crypto market cap excluding BTC" as I have warned 2 days ago that's it's falling into a correction
The altcoin market cap is currently in correction as capital flows back into Bitcoin dominance, which has already broken its downtrend line and reached today 59%.
If the altcoin market cap holds its critical support and BTC dominance starts dropping, we can expect a broader bullish recovery across altcoins, with Ethereum following.
If that support breaks, then the weaker bearish scenario may unfold.
Conclusion
For now, the $3,760 support remains the critical line in the sand. Holding it keeps Ethereum within a bullish recovery path. Breaking it could open the door to deeper corrections.
Trade active
it appear the ETH has respected the 3946k support and reacting bullish around it, will see the full reaction after couple of hours
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Join our telegram:
t.me/cryptoships95
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.