Ethereum News Today: Ethereum Holds Critical $3,500 Support Amid 53.42% Gains Consolidation

Ethereum remains under close scrutiny as it hovers near the critical $3,500 support level, with analysts suggesting the price may be staging a “fakeout” rather than signaling a deeper correction. According to technical analysis, ETH is currently in what appears to be Wave 2 of a broader five-wave bullish trend, with Wave 3 potentially set to push the price beyond $4,800 if key support levels hold [1]. The current consolidation near $3,550 is seen as a crucial test of the $3,500 area, which analysts believe is essential to maintaining a bullish setup and avoiding a drop toward $3,200 or even $2,800 [2].

The market has recently seen a sharp 10% pullback from a high near $3,900, but the price has yet to break below the former resistance-turned-support zone around $3,500. This behavior mirrors similar patterns observed around the $2,400 level earlier in the year, where a deep red candle triggered panic before a swift recovery followed. Analysts caution that such movements often lead to missed buying opportunities as traders overreact to temporary price declines [1].

Ethereum’s price trajectory can be traced back to a key breakout in late May, when it moved above the $2,600 level and began a rally past $3,800. The move was supported by bounces between $2,400 and $2,600, which had served as accumulation zones earlier in the year. The price remains above the former resistance level, now acting as immediate support, with the $3,800–$4,000 range considered the next critical hurdle for bulls [1].

Wave structure analysis suggests Ethereum is following a pattern similar to its 2023 bull run, where a five-wave impulse carried prices from $1,250 to over $4,200. Current positioning places ETH near the end of Wave 2, with Wave 3 potentially driving the price toward $4,800 and Wave 5 expected to target $5,200. A confirmed breakout above $3,800 would validate the continuation of this bullish formation [1].

Despite the short-term volatility, the overall market outlook remains cautiously bullish. Institutional activity has been a key factor, with SharpLink continuing to accumulate ETH. The firm recently added $54 million worth of ether to its holdings, bringing its total stake to approximately $1.65 billion in 480,031 ETH. This accumulation reflects confidence in Ethereum’s long-term fundamentals, even as short-term bearish pressures persist [1].

Ethereum has already experienced a 53.42% gain in a recent period, but the market is now consolidating ahead of a potential breakout. Analysts are watching for signs of a reversal, particularly as the price moves below key support levels, which could trigger a pullback toward $3,500 or lower [2]. Broader macroeconomic concerns, including the Federal Reserve’s hawkish stance and potential tariff-related risks, are also contributing to increased uncertainty in the cryptocurrency market [3].

While some forecasts suggest ETH could test the $3,150–$3,300 range in a more bearish scenario, others remain optimistic that further institutional inflows and network upgrades could support a rebound [4]. The Pi Network price forecast also warns of potential record lows for ETH, though these predictions are based on ongoing bearish sentiment rather than concrete on-chain data [5].

Traders are advised to monitor both technical indicators and broader market conditions as Ethereum sits at a pivotal crossroads. The next major move—whether a pullback or a sustained bullish breakout—will likely depend on how institutional demand, macroeconomic developments, and network activity evolve in the coming weeks. For now, the market is watching closely to see whether the $3,500 level holds, as its integrity is key to maintaining the current bullish momentum.

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Source:

[1] https://cryptofrontnews.com/analyst-predicts-ethereum-fakeout-as-price-holds-crucial-3500-support/

[2] https://www.ainvest.com/news/ethereum-news-today-ethereum-consolidates-53-42-gains-awaits-bullish-breakout-4-904-2508/

[3] https://www.fxstreet.com/cryptocurrencies/news/bitcoin-on-the-brink-rising-wedge-warns-of-111-000-break-to-define-next-major-move-202508032028

[4] https://in.tradingview.com/symbols/ETHUSD/ideas/?exchange=OANDA

[5] https://www.fxstreet.com/cryptocurrencies/news/pi-network-price-forecast-pi-eyes-record-low-as-sell-off-spree-persists-202508040730