Ethereum is once again testing the strength of its key support band around the $3,700 area, a level that has acted as a crucial lifeline for the bulls in recent months. With momentum that fades after repetitions refusal Close to resistance, speculation is whether buyers can step in to trigger another push higher or if a deeper correction is on the horizon.
ETH retreats after Golden Pocket rejection
In his latest market update, Luca shared knowledge on Ethereum’s current technical setup, noting that the asset was recently rejected within the long-term resistance zone it had highlighted in previous analyses. This rejection aligns with the golden pocket between Fibonacci points of interest (POI) between 0.5 and 0.618. Following this rejection, Ethereum price retreated into the wider accumulation range marked in green on its chart.
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According to Luca, this accumulation zone has served as a strong reversal zone in recent months, providing crucial support whenever price corrections intensified. This also coincides with the weekly bull market support band, reinforcing its importance as a potential turning point into Ethereum’s next major move.
Despite this, the analyst warned that the current market structure appears vulnerable to collapse. Luca stressed that while he remains optimistic about Ethereum’s long-term potential, if the outage is confirmed, he plans to remain objective by hedging a portion of his spot holdings. He said this would help reduce exposure to downside volatility while keeping capital ready to re-enter the market. walk once a more lasting 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 the ability to act quickly when clear opportunities arise while protecting capital during volatile market phases.
Ethereum holds the mid-range support zone between $3,600 and $3,700
According to According to GrayWolf6, Ethereum is currently trading within a defined range between $3,900 and $3,100, with the price recently touching the intermediate support zone between $3,600 and $3,700. He noted that the Stochastic RSI is giving a bullish signal, hinting at the potential for a near-term rebound from this area as buyers begin to regain ground. momentum.
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GrayWolf6 further explained that since ETH hit $4,250 just a few days ago, another move to the upper band remains a possibility. If the price regains strength, the next upside target could extend to around $5,200.
Despite this optimistic outlook, the analyst warned that Ethereum remains confined to the lower range, keeping the downside risk near $3,100. He mentioned taking profits on his previous short position and is now closely watching for signs of a rebound in this intermediate position. support level. For him, the strategy remains stable, with risk management, hedged positions, and the next step waits patiently.
Featured image from iStock, chart from Tradingview.com
