Ethereum News Today: ETH's $3,120 Support and $3,937 Resistance: Pivotal Levels for Upcoming Move

Ethereum's price action has drawn significant attention to the $3,120 level, where over 2.6 million ETH were accumulated, marking it as a critical demand zone. According to data from Glassnode's cost basis distribution heatmap, this price area has attracted heavy buying from large holders, creating a dense cluster of wallet addresses between $3,117 and $3,141. As long as ETH remains above this zone, many of these positions stay in profit, reducing the likelihood of aggressive selling, as noted in a Coincu analysis.

The $3,120 level acts as a psychological and structural support point. If Ethereum fails to hold above this area, it could trigger a wave of liquidations, as more than 2.6 million ETH would move into a loss position. Conversely, a sustained breakout above $3,937—a key resistance level identified by trader Lennaert Snyder—could invite fresh long positions and propel the price higher. Snyder emphasized that a close above $3,937 would likely trigger bullish momentum, while rejection could pull the price back toward the $3,700 support zone, a point also highlighted in the Coincu piece.

Market conditions suggest a period of consolidation ahead. Ethereum currently trades within a $3,700–$3,937 range, with short-term volatility subdued. Snyder advised traders to exercise caution over the weekend, when trading volume typically declines. "I'm not forcing trades since weekend chop is coming for your stoplosses," he noted, highlighting the risks of range-bound strategies during quieter sessions, as discussed in the same Coincu coverage.

Technical analysis tools, such as the Barchart cheat sheet for ETHUSD, further underscore the importance of these levels. The cheat sheet employs standard deviation calculations to identify support and resistance zones, with blue areas below the last price signaling potential support and red areas above indicating resistance. While the methodology is more procedural, it aligns with the on-chain data showing Ethereum's clustering around $3,120 and the looming $3,937 threshold.

The coming days will be pivotal for Ethereum's trajectory. A breakout above $3,937 could signal renewed bullish sentiment, while a retreat below $3,700 might force the market to retest the $3,120 accumulation zone. For now, traders remain closely watching these levels, as they could determine the next major move in ETH's price action.