Ethereum Eyes $5,000 Rally if $3,800–$3,900 Support Holds
Ethereum is retesting its critical $3,800–$3,900 support zone after breaking down from a multi-week triangle. High trading volume on the breakdown signals active volatility and position reshuffling. If Ethereum holds this support and reclaims the descending trendline, it could stage a 28% rally toward $5,000. Traders should watch for a shift from sell-dominant to buy-dominant volume, clean daily closes above the trendline, and expanding trading ranges. A temporary dip to $3,500–$3,600 may act as a liquidity sweep to flush weak longs before a parabolic move. Key metrics: ETH at ~$3,937 with 24-hour volume near $62.8 billion. These technical confirmations will determine whether the market prepares for a sustained bullish leg.
Bullish
Ethereum’s successful retest of the $3,800–$3,900 support zone amid rising volatility signals strong demand at key levels. Historical patterns show that triangle breakdowns followed by clean retests often precede sharp rebounds. The 28% upside to $5,000, confirmed by a shift to buy-dominant volume, trendline reclaims, and range expansion, offers a clear bullish case. A short-term dip to $3,500–$3,600 could serve as a healthy liquidity sweep, setting the stage for a parabolic rally. These factors point to renewed buyer interest and a higher probability of sustained upside in both the near and medium term.