Ethereum (ETH) is bracing for a potentially explosive week, coming off its highest weekly close in over four years. The price is currently navigating a critical liquidity zone between $3,900 and $4,400, resulting in price swings exceeding 11%. This tug-of-war between buyers and sellers is creating both risk and opportunity for traders.
Key Support and Resistance Levels
Ethereum's recent low of $4,224 on Monday puts immediate focus on the $4,150 support level, bolstered by multiple liquidity lows. A fair value gap around $4,000, coinciding with the 0.50–0.618 Fibonacci retracement range between $4,100 and $3,900, presents an attractive area for swing traders to consider bids. Trading platform Kiyotaka identifies this zone as a "giant cluster of resting bids stacked all the way down to $3.9K," suggesting it's a crucial range to monitor for liquidity-driven stop hunts and possible reversals.
Potential Upside Targets
On the upside, Ether faces immediate resistance near $4,400, an imbalance formed during the Monday lows. A sustained bullish reaction at this level could propel ETH toward $4,583, a higher time-frame resistance. A confirmed break and stabilization above this level would significantly strengthen the case for a new all-time high in the coming days, extending the coin's multi-week bullish momentum.
Factors Driving the Optimism
The bullish outlook for Ethereum is fueled, in part, by record spot ETF inflows, indicating strong institutional demand. Recent data shows inflows of 649,000 ETH. Long-term projections remain optimistic, with dips toward $3,000 to $3,500 being viewed as potential setups for a rally toward $8,000. Some analysts are predicting a 100% rally to new highs if key resistance levels are broken.
- Key Support: $3,900 - $4,150
- Key Resistance: $4,400 - $4,583
- Potential Target: New All-Time High