Saad Ullah
Ethereum has reached a make-or-break point after its recent sell-off. The cryptocurrency is now testing support levels that will likely decide whether we'll see a short-term recovery.
Current Price Action: What the Chart Shows
Trader PARA360 (Kripto Ve Hisse) points out an interesting detail: the market left behind an equal low without fully clearing liquidity, which could signal an incoming bounce attempt.
Looking at the 30-minute ETH/USDT chart, Ethereum appears to be stabilizing after heavy selling pressure. The price is hovering around $3,725–$3,733, where buyers have stepped in to defend the level. This area is crucial right now.
If this support breaks down, there are backup levels at $3,666 and $3,641, with a more significant floor around $3,363. On the flip side, if ETH manages to push higher, it'll first need to clear resistance near $3,950. Breaking through that could open the door to $4,100.
The chart pattern is worth noting too. That equal low suggests liquidity wasn't fully swept, which often means another dip could happen before a stronger reversal takes hold. The highlighted blue zone on the chart marks a potential entry area for long positions targeting $3,950, with stop-losses placed just below key support to manage risk.
What's Behind These Price Swings?
Key factors at play:
- Market Sentiment: Ethereum tends to follow Bitcoin's lead, and overall crypto sentiment remains shaky
- Liquidity Dynamics: Price movements show classic liquidity hunts where big players push prices into stop-loss zones before reversals
- Macro Environment: Global risk appetite is fragile, though potential monetary easing could help ETH in the coming months
- Fundamentals: Despite short-term choppiness, Ethereum still dominates DeFi activity and layer-2 scaling, which supports its longer-term value
Ethereum's current price action shows the tug-of-war between near-term weakness and recovery potential. If the $3,725 support holds firm, we could see ETH climb back toward $3,950. But that equal low pattern is a warning sign that liquidity sweeps might not be finished, meaning another dip is still possible.
For active traders, this setup presents a tactical long opportunity, but only with tight risk controls. For those holding long-term, the real question is whether Ethereum can stay above support and build momentum back toward $4,000 and higher.
Saad Ullah
