TLDR
- ETH rebounds from the $3,750–$3,850 support zone after a sharp decline from $4,400.
- The ETH/BTC ratio finds strong support near 0.0325, signalling buyer accumulation.
- A breakout above $4,000 could trigger recovery toward $4,150–$4,200 resistance.
- Holding above the inefficiency zone confirms short-term bullish momentum for ETH.
Ethereum has found a short-term equilibrium after weeks of volatility. The token’s price action now reflects a delicate balance between defending its lower support and preparing for a possible breakout. While the U.S. dollar pair (ETH/USDT) shows corrective movements after a steep decline, the ETH/BTC pair has entered a cooling phase that could attract strategic accumulation.
Ethereum Defends Key Support as Buyers Hold the Line
The Ethereum (ETH/USDT) chart indicates a short-term corrective phase following a sharp fall from the $4,400 zone. Price has recently rebounded from the $3,750–$3,850 demand area, a region that aligns with inefficiencies left behind during prior moves. This zone has provided temporary relief, as buyers continue to absorb selling pressure in an attempt to stabilize momentum.
ETH/USD 1H Chart | Source: X
A descending trendline now defines the short-term resistance, with Ethereum struggling to reclaim levels around $3,960–$4,000. A confirmed breakout above this line may trigger a localised reversal, potentially driving price toward the $4,150–$4,200 range—the midpoint of the previous consolidation structure. Until then, the risk of forming another lower high persists, signaling that bearish undertones remain intact.
The Inefficiency Zone Acts as the Market’s Turning Point
Moreover, the inefficiency range between $3,750 and $3,850 remains the key battlefield. If sellers regain control, Ethereum could retest this area to fill the imbalance before any renewed upside attempt. A decisive breakdown below $3,750 might expose deeper liquidity pools near $3,620, where buyers previously showed interest.
However, maintaining stability above this zone could strengthen bullish sentiment. The market structure still shows potential for recovery if price can reclaim $4,000 with convincing volume. That would mark a significant signal of renewed buyer strength and possibly the start of another short-term uptrend. The coming sessions may therefore determine whether this support evolves into a launchpad or breaks into a deeper corrective pattern.
ETH/BTC Shows Early Signs of Structural Support
Furthermore, the ETH/BTC three-day chart paints a broader view of Ethereum’s performance relative to Bitcoin. After surging 144% from April lows near 0.018 to August highs around 0.043, the pair has entered a cooling phase. The price now hovers near a support zone between 0.0325 and 0.034, an area that coincides with prior resistance turned support and the 50-day moving average.
ETH/BTC 3D Chart | Source: X
Decreasing volume and a softening RSI suggest that selling pressure is fading. This may represent the “ideal zone for buys” where patient traders start accumulating ahead of the next major move. Still, the RSI’s neutral slope leaves open the possibility of short-term liquidity sweeps before a confirmed reversal. Stability here could form a new base for a sustained recovery in Ethereum’s relative strength.
A Rebound Could Redefine Ethereum’s Medium-Term Outlook
Consequently, if ETH/BTC manages to hold its current range and regain momentum, resistance near 0.040 and 0.043-0.044 could become immediate targets. Flipping these zones into support would confirm a renewed bullish structure and mark the potential start of another upward cycle.
Failure to maintain the 0.0325 threshold, on the other hand, could drive the ratio lower toward the 0.026 or even 0.022 regions historically known for accumulation. Despite near-term caution, Ethereum remains structurally healthy across higher timeframes, suggesting the recent pullback might simply be a necessary reset before another rally phase.
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