Saad Ullah
Ethereum (ETH) has bounced hard off $3,820, handing traders solid profits, but now faces its toughest test at the $4,200 resistance zone. How ETH handles this level will likely set the tone for the next leg of price action.
Strong Recovery From Support
Ethereum rallied sharply from $3,820 support to above $4,130, delivering nearly 8% gains in a short window.
The $4,200 zone lines up with the Value Area Low and Point of Control, making it a key spot for profit-taking and hedge shorts. Mr. Trader noted that shorting ETH above $4,700 and flipping long from support was a high-level play that captures ETH's volatile structure.
If ETH breaks past $4,200, a squeeze toward $4,400–$4,450 becomes likely. A rejection, however, could push prices back to $3,950–$3,820, weakening bullish momentum.
Such pivotal levels make the next move critical, as traders closely watch whether Ethereum can sustain its breakout or fall back into consolidation.
Broader Market Context
Ethereum's recent rally mirrors broader optimism in crypto markets as traders position around potential Fed policy shifts and ETH network upgrades. But resistance zones have a history of triggering sharp reversals, so balancing optimism with caution makes sense here.
Saad Ullah
