Ethereum Price Analysis: Is $3.5K Next for ETH After 13% Weekly Drop?
Ethereum continues its correction part after failing to keep up momentum above $4,200. The market’s sentiment stays cautious as ETH trades round $3,700, exhibiting weak spot each technically and sentiment-wise. Buyers are seemingly dropping management, and the main focus now shifts to key help zones under.
Technical Analysis
By Shayan
The Daily Chart
On the day by day timeframe, ETH has damaged under the long-term ascending channel construction and the 100-day transferring common, situated across the $4,100 mark. The value is presently transferring towards the 0.5 Fibonacci retracement degree at $3,530. This zone is a crucial space that beforehand acted as help, and is the bottom of the latest rally in August.
The RSI round 37 signifies bearish momentum however hasn’t reached oversold territory but, implying that extra draw back continues to be doable. A clear breakdown under $3,500 might open the best way towards the 0.618 retracement degree at $3,200, whereas reclaiming the final value high round $4,200 can be the primary signal of restoration.
The 4-Hour Chart
The 4-hour chart exhibits clear bearish order circulation because the downtrend is aggravating after dropping the $4,200 degree and failing to reclaim it. The latest rejection from this zone has confirmed a shift within the short-term market construction to bearish.
Momentum stays weak with RSI close to 33, suggesting sellers nonetheless dominate. The subsequent demand zone lies round $3,500–$3,400, the place patrons just lately held their floor through the huge liquidation occasion. However, failure to carry this degree might speed up the transfer towards $3,200 and even $3,000 in a deeper decline.
Sentiment Analysis
Long Liquidations
Ethereum’s newest drop triggered a notable spike in lengthy liquidations throughout all exchanges, marking one of many largest deleveraging occasions in latest months. This surge in pressured promoting displays how overconfident lengthy merchants had been caught off guard by the market’s swift reversal.
Historically, such liquidation spikes typically seem close to native bottoms as leveraged positions get flushed out. However, the magnitude of this newest transfer suggests panic amongst retail merchants, whereas establishments are probably ready for clearer affirmation earlier than re-entering.
Overall, the sentiment stays fearful and risk-averse, with merchants preferring warning over aggressive lengthy publicity within the quick time period.
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