Ethereum News Today: Ethereum Bounces From $2,800 Support, Faces Key $3,870 Resistance Challenge

Ethereum (ETH) has rebounded from a critical support zone near $2,800, triggering renewed interest among traders as the cryptocurrency approaches a pivotal resistance level at $3,870. The price has shown sustained upward momentum, testing historical resistance areas and reflecting improved market sentiment following earlier sell-offs. While the weekly chart indicates a macro bullish structure, a decisive breakout above $3,870 remains unconfirmed, leaving the market in a state of anticipation [1].

On the weekly timeframe, Ethereum’s price action reveals a pattern of accumulation and distribution, with the recent move above intermediate resistance zones signaling trend strength. Analysts emphasize that closing above $3,870 with sustained volume is essential to validate a bullish continuation. Failure to breach this level could result in sideways consolidation or a correction, particularly if volume weakens [1]. A Twitter post from Crypto Tony highlights the $3,870 threshold as a key target for further gains, noting that reclaiming this level could open the path to prior highs [2].

Short-term dynamics on the 15-minute chart reveal mixed signals. Ethereum briefly dipped below the 7-period and 25-period simple moving averages, hitting a low of $3,530, before reversing upward. Post-rebound activity saw the price climb above short-term moving averages, though it remains below the 99-period SMA—a critical benchmark for reinforcing bullish momentum [1]. Bollinger Bands expanded during the recovery, indicating heightened volatility, but the asset’s current position under the 99-period SMA underscores the need for further strength to confirm a sustained rally.

Volume patterns add a layer of caution to the analysis. Increased activity accompanied the recent sell-off, followed by average levels during the rebound. This suggests market indecisiveness, with analysts noting that additional reinforcement may be required for a trend reversal [1]. To solidify the bullish case, Ethereum must surpass the 99-period SMA and maintain above it. Without this, range-bound trading or a retest of lower support levels becomes more likely, complicating short-term directionality.

Technical forecasts from Binance Square and Coinpedia outline potential scenarios for Ethereum’s next move. A user profile on Binance Square posits a minor correction to the 0.618 Fibonacci retracement level (~$2,797) before a fresh rally, aligning with broader market sentiment [2]. Meanwhile, Coinpedia highlights two outcomes: a breakout above $4,096 if $3,870 is cleared, or a retest of $3,525 if the resistance proves insurmountable [3]. These projections underscore the critical role of the $3,870 level, historically a psychological barrier where past attempts to break through have triggered sharp corrections.

Market observers stress the importance of on-chain metrics like open interest and volume flow in assessing breakout strength. Sustained buying pressure above $3,870 would likely coincide with rising volume and open interest, while a pullback might see these indicators contract. Ethereum’s cross-chain correlation with Bitcoin also remains a factor, as investor behavior in the broader crypto market often influences directional bias.

It is crucial to distinguish between analyst forecasts and actual outcomes. The $3,870 level and associated Fibonacci targets represent estimates derived from historical patterns, not guaranteed price movements. Investors are advised to monitor real-time data and remain adaptable, as macroeconomic shifts or regulatory developments could rapidly alter market dynamics.

Source:

[1] [Ethereum Price Prediction - $4096 Breakout or Pullback to $3525](https://coinpedia.org/price-analysis/ethereum-price-prediction-4096-breakout-or-pullback-to-3525/)

[2] [Jens_'s Profile | Binance Square](https://www.binance.com/en-BH/square/profile/MrAlbert)

[3] [Is Ethereum Gearing Up for the Next Big Leg?](https://www.binance.com/en/square/post/27351089296777)