- Ethereum remains steady above $3,800 after a major breakdown, with buyers defending critical zones amid cautious optimism across the crypto market.
- Exchange data shows rising short liquidations above $4,100, signaling increasing pressure on bearish traders as Ethereum attempts a recovery.
- Bitmine’s $480 million ETH purchase reinforces confidence among large investors, supporting Ethereum’s resilience despite heightened volatility in global markets.
Ethereum (ETH) is trading just above $3,800 after a sharp correction, as traders monitor key support and resistance levels. Market data shows growing institutional activity, while broader macro tensions add uncertainty to the asset’s near-term direction.
ETH Struggles to Reclaim Broken Support Zone
Ethereum has slipped below a critical support area between $4,060 and $3,875, which is now acting as resistance. The move was confirmed by strong bearish candles, signaling intense selling pressure in recent sessions.
At the time of reporting, ETH is hovering around $3,819 and facing rejection near the broken zone. The asset has attempted to recover, bouncing from a local demand area near $3,675. This level currently acts as short-term support, but momentum remains weak.
Analyst Ted observed that Ethereum must reclaim $3,875 to retest $4,060 and potentially extend gains to $4,265. However, low trading volume suggests limited buying strength, making the rebound fragile. Failure to break above resistance could see ETH retest support zones around $3,555 to $3,435 in the coming days.
Liquidation Data Shows Short Squeeze Potential
Data from Coinglass, shared by Ted, reveals key liquidation levels across major exchanges. Ethereum’s current price of
$4,118 is close to zones where many short positions are being liquidated.
Cumulative short liquidation leverage sharply increases above $4,100, suggesting traders holding short positions may face forced closures as prices rise. Meanwhile, long liquidation risk declines in this range, indicating most long positions remain relatively safe above current prices.
Large liquidation clusters between $4,200 and $4,700 show where potential short squeezes could occur, particularly around $4,391 and $4,601. Binance and Bybit dominate these zones, indicating where the majority of leveraged activity is concentrated.
Institutional Buying and Technical Setup Draw Attention
Reports indicate that Bitmine invested $480 million into Ethereum during the recent market downturn. The move has been viewed by traders as a strong show of confidence amid widespread volatility.
Analyst Ali Charts highlighted Ethereum’s ongoing pattern within a descending parallel channel. The asset has consistently formed lower highs and lower lows, reflecting market hesitation.
Currently, ETH is testing the lower boundary of the channel near $3,700. If support holds, a rebound toward $4,030 or even $4,400 could develop. However, any drop below this zone may confirm further downside pressure. Traders continue to monitor Ethereum’s structure closely as the asset remains at a critical technical juncture.
