Ether is once again testing the strength of its key support around the $3,700 zone, a level that has been a key lifeline for bulls in recent months. With momentum fading after repetition rejection near resistance, there is speculation as to whether buyers may step in to trigger a renewed upward momentum, or whether a deeper correction is on the horizon.
ETH Pulls Back After Gold Pocket Rejection
In his latest market update, Luca shared information observations on Ethereum’s current technical setup, noting that the asset has recently faced rejection at the high-timeframe resistance zone he highlighted in previous analyses. This rejection coincides with the golden pocket between the Fibonacci Points of Interest (POI) from 0.5 to 0.618. Following this rejection, Ethereum’s price retreated to the broader accumulation range marked in green on his chart.
According to Luca, this accumulation zone has been an area of robust trend reversal in recent months, providing key support whenever price corrections intensify. This also coincides with the weekly bull market support band, reinforcing its importance as potential a turning point in Ethereum’s next major move.
Nevertheless, the analyst cautioned that the current market structure appears susceptible to collapse. Luca stressed that while he remains sanguine about Ethereum’s long-term potential, if a collapse is confirmed, he plans to remain objective by hedging some of his spot positions. He believes this would support reduce exposure to downside volatility while keeping capital ready to re-enter the market market when a more sustained bullish reversal emerges.
Luca concluded by reiterating his adaptive trading strategy, a balance between flexibility and discipline. By maintaining moderate cash positions and exposure to defensive assets, it ensures you can act quickly when clear opportunities arise, while safeguarding your capital during volatile market phases.
Ethereum maintains a mid-range support zone in the $3,600-$3,700 range
According to to GrayWolf6, Ethereum is currently trading in a specific range of $3,900 to $3,100, with the price recently reaching the mid-range support area around $3,600 to $3,700. He noted that the stochastic RSI is generating a bullish signal, pointing to the possibility of a short-term bounce out of this zone as buyers begin to regain strength momentum.
GrayWolf6 further explained that since ETH reached $4,250 just a few days ago, another move towards the upper band is possible. If the price regains strength, the next upside target could be around $5,200.
Despite this sanguine outlook, the analyst cautioned that Ethereum remains bound at the lower end, maintaining downside risk near $3,100. He mentioned taking profits from his earlier low position and is now closely watching for signs of a rebound in this intermediate level of support. For him, the strategy remains stable, risk managed, positions hedged, and the next move is a patient wait.
Featured image from iStock, chart from Tradingview.com
