Ethereum News Today: Ethereum Hovers Near $3,639 as $3,900 Resistance and $3,147 Support Define Market Dynamics

Ethereum (ETH) is currently trading near $3,639, with key resistance forming at $3,900 and immediate support at $3,147. The cryptocurrency has faced multiple failed breakout attempts below $3,800, indicating a tug-of-war between buyers and sellers. Analysts note that a sustained break above $4,000 could open the door to a bullish trajectory, with some projecting a potential target as high as $8,000 by 2028. Conversely, a drop below $3,147 could push the price toward the $2,900 demand zone, deepening the bearish sentiment [1].

The price structure has weakened following a breakdown from a rising wedge, signaling bearish pressure in the short term. A retest of the trendline confirmed this shift, and as long as ETH remains below $3,800, the downward bias persists. Classic bearish divergence—rising price but weakening momentum—supports this bearish outlook. Key levels to watch include $3,147 and $2,913, both of which could see increased selling pressure if the price breaks below them [1].

On the bullish side, Ethereum is defending the $3,400–$3,500 zone, a former breakout area now acting as support. A double bottom pattern has formed, suggesting a potential reversal if buying interest intensifies. A breakout above $4,000, especially with increased volume, could flip market sentiment. If ETH closes above that level, the next targets could be $4,300 to $4,500, mirroring a similar rally observed in early July [1].

A liquidity heatmap from TedPillows via Coinglass reveals that intense sell-side liquidity is clustered between $3,900 and $4,000. This liquidity wall is a significant obstacle for bullish continuation. Until this cluster is overcome, Ethereum may remain range-bound or experience pullbacks. Analysts suggest that breaking through $4,000 is essential not just for short-term momentum, but also for a potential long-term bullish trend reversal [1].

CryptoGoos highlights a broader bullish perspective based on the monthly ETH/USDT chart, which shows a developing cup-and-handle pattern. If Ethereum successfully breaks above $4,000, the pattern could set the stage for a long-term rally toward $8,000. However, this outcome depends on a clean breakout supported by rising volume and sustained buying pressure [1].

Ethereum’s next move will likely be determined by how buyers and sellers interact with these critical levels. A strong bullish breakout above $4,000 would signal a reversal in the current bearish trend, while a breakdown below $3,147 could lead to further declines. The $3,900 resistance level remains a key battleground, with the potential to dictate the short- to mid-term direction of the asset [1].

Source: [1] Ethereum’s Next Move May Depend on Resistance at $3,900 as Buyers Test Market Dynamics (https://en.coinotag.com/ethereums-next-move-may-depend-on-resistance-at-3900-as-buyers-test-market-dynamics/)