- Ethereum has been trading at a support of above $4,000 and it represents continuation of accumulation and good structural recovery following a liquidity reset.
- This resistance zone of 4,150-4,450 is the primary breakout area, and both the 20-day EMA and the 50-day SMA have a technical convergence at the resistance zone.
- On-chain shows historic activity and deflationary power, which adds to long-term resilience as traders await confirmation at higher than $4,450.
Ethereum is holding firm at a position of more than $4,000 support level as traders are waiting to see the market make a strong breakout. Short-term momentum has slowed, but the bigger picture format indicates a stage of re-accumulation, with positive network action and manageable volumes of trading.
Liquidity Reset and Market Structure
In a detailed update shared on social platform X, Alpha Crypto Signal (@alphacryptosign) noted that Ethereum recently completed a liquidity grab beneath the $3,400–$3,600 demand zone. The analyst explained that the move cleared out weak positions through a final downside wick before rebounding strongly. This pattern, often described as a Wyckoff-style “spring,” typically signals the exhaustion of selling pressure and potential preparation for upward continuation.
According to Alpha Crypto Signal, the price reaction after the liquidity sweep appeared “strong and healthy,” suggesting that the move effectively reset short-term momentum. The analysis added that Ethereum is now hovering just below a horizontal resistance area, which remains the next major decision point for traders. A clean flip of this zone into support could confirm the transition toward a bullish structure.
As of writing, Ethereum faces resistance around $4,150–$4,450, a region that previously acted as support before turning into a ceiling during September’s retracement. The confluence of the 20-day EMA and 50-day SMA near this level reinforces its technical importance. A confirmed breakout above this zone, supported by volume, would open the path toward $4,800–$5,000 — aligning with prior swing highs observed earlier in the year.
Consolidation and Short-Term Trading Setup
Ethereum as of writing, is trading at $4,124.72, reflecting a minor daily decline of 0.31% amid broader market consolidation. In a subsequent market note, Alpha Crypto Signal emphasized that despite cooling intraday momentum, the structure remains constructive above the $4,000 psychological mark. The analyst observed that Ethereum “grabbed liquidity from the boxed zone with that final wick,” effectively clearing out weaker long positions before stabilizing.
The $4,000–$4,300 range now defines Ethereum’s short-term trading corridor. An extended trend above $4300 might cause a bullish extension to $4500-$4600 and any failure will lead to a downturn back to $3800 or the last liquidity area around $3400. The market volume has fallen by 18.12% in the last 24 hours, which represents a sign of cooling volatility after a rebound last week.
Although the turnover is decreasing, the market is still liquid, with Ethereum having a capitalization of $497.85 billion and almost $49.74 billion traded daily. The reduced volatility climate can provide a measured arrangement to traders who are seeking validation prior to getting into long poses in the event of any retest of a breakout.
On-Chain Strength and Broader Outlook
On-chain sentiment is also still showing to be positive and analysts like BuddyKing have noted that Ethereum Layer 1 usage is all-time high. The number of transactions and the number of active addresses have been on a high, indicating long-term user activity even at a period when the price has stagnated. Historically, such network expansion has preceded renewed price strength once technical resistance levels are overcome.
Ethereum’s volume-to-market-cap ratio currently sits at 10.11%, indicating stable liquidity and moderate trading activity. Its supply of 120.69 million ETH that circulates combined with the deflationary mechanism offered by EIP-1559 offers a stable supply base that remains attractive to long-term holders.
Structurally speaking, Ethereum is at a neutral-bullish position so long as price continues to hold above the lower demand levels. In case Bitcoin stays at the same level, Ethereum will at least prove to be relatively strong as capital rotation moves back into assets with higher beta. Patience is the wise course of action until a confirmed breakout above $4450 is realized, with the asset condensing within the current equilibrium range.
