- Ethereum trades near $4,110 after reclaiming $4,000, with momentum building but resistance levels remain decisive.
- Derivatives show stronger long positioning, though rejection could pressure the asset toward $3,400–$3,200 demand zone.
- Trading volume at $23.78 billion supports short-term stability, with buyers defending the $4,100 level.
Ethereum is trading around the $4,100 area, a place that can determine the direction of the market. The price movement is a sign of the new buying activity, and the traders are still doubtful since the level has become resistance following a recent failure.
Ethereum Tests Former Support as Resistance
Ethereum (ETH) is as of writing, selling at $4110.62, and has gained 2.4% in the last 24 hours. The recovery came following the asset recovering the lows of $3,971.15, and soaring to test highs of $4,141.84 before falling to the current range.
The $4,100 level has emerged as a critical retest area. Previously acting as strong support, this zone has now turned into resistance following the breakdown from the $4,600–$4,800 band. Market observers are watching to see if ETH can reclaim this area with conviction.
Alpha Crypto Signal stated that Ethereum is currently testing its lost horizontal support zone, warning that rejection would confirm weakness. The tweet further suggested that such a rejection could trigger a swing short toward the lower marked demand zone.
Market Structure and Key Levels
Technically, the market structure is still skewed towards the negative. Both the exponential and simple moving averages are above the current price meaning that the sellers still hold an upper hand. Recent candlestick behavior reflects repeated attempts to push higher, though momentum appears weak.
If Ethereum fails to break decisively above the $4,100–$4,397 band, the probability of rejection increases. In this case, traders will turn attention to the $3,400–$3,200 support region. This zone has previously absorbed heavy selling pressure and served as a base for rallies.
Conversely, a clean reclaim of $4,100 backed by volume could alter short-term sentiment. A strong move through $4,397 may encourage a relief rally into the $4,600–$4,800 range, though this scenario requires sustained demand not yet evident in recent sessions.
Derivatives Positioning and Market Activity
Market metrics indicate robust participation. Ethereum’s capitalization stands at $496.1 billion, with its fully diluted valuation identical due to the circulating supply of 120.7 million ETH being fully deployed. This eliminates future risks from supply inflation.
Trading activity has also expanded, with 24-hour volume reaching $23.78 billion. The strong turnover provides liquidity and supports the latest recovery, suggesting the move was backed by genuine buying interest. Such liquidity helps absorb both buying and selling pressure more effectively.
In derivatives, traders show a bullish tilt. Binance ETH/USDT long/short ratios stand at 2.0451 for accounts and 2.9147 for positions. OKX reports a more balanced 1.64 ratio but still favors longs. Liquidation data remains modest, with just $1.70 million in the past four hours, reflecting orderly market adjustments rather than forced sell-offs.
