Following the strongest rallies and rejections of all time, Ethereum shifted to the revision phase. Both the daily and low time frame suggest that the next critical move depends on whether buyers are able to maintain their primary support zone or whether the bear leads the market to a deeper retrace.
ETH Price Technology Analysis
By Shayan
Daily Charts
On the daily charts, Ethereum is being boosted after a stagnant advance aired on the 4.8k ATH. This price recently supported support around the midline of the ascending channel and the 0.5 Fibonacci retracement ($4,070), a zone tailored to previous demand levels.
As this support weakens, the next major demand will be within the 0.618-0.786 Fibonacci retracement range ($3,900-$3,660).
Meanwhile, the RSI is neutrally cooled near 57, indicating that the purchased conditions have been reset, but no clear directional bias has yet to form. Above $4,070, a wider bullish structure will be maintained, with the critical breakdown risking the revision expanding to the $3,600-3,800 range.
4-hour chart
With a 4-hour time frame, ETH has recently rebounded from $4.2K support, which overlaps with the ascending trendline. This confluence makes the $4.2K zone an important battlefield for buyers.
Price Action then developed a short-term integration range of $4,200-4,400, similar to an inverted head and shoulder pattern. This reflects market indecisiveness. Buyers are actively defending support, but they struggle to regain resistance.
A confirmed breakout of over $4.4K validates the reverse H&S formation and opens a new path for push towards the ATH region. Conversely, failing to hold $4.2,000 in support and trendlines could expose ETH to deeper retracement, potentially targeting the 0.702–0.786 Fibonacci zone.
On-Chain Analysis
By Shayan
Ethereum continues to trade with sharp swings after rejecting it from an all-time high, highlighting a clearing heatmap where leveraged locations are clustered. These zones often act as price magnets, as fluid hunting controls short-term movements.
During the rally to the $4,800-$4,900 range, ETH caused a short cascade of liquidation before a sharp reversal. This trap created a fluid vacuum downside vacuum that was caught up in the top with the late buyer caught in the top.
Following the denial, ETH fell to $4,100-4,200, taking advantage of a dense cluster of long liquidation, facilitating the aggressive sale observed in mid-August.
Currently, the heatmap highlights two important liquidity zones.
- $4,500-4,700: A dense cluster of short liquidation that could attract prices if buyers regain control.
- $3,800-$3,900: If there is severe focus on long liquidation that has not yet been tested and current support fails, it could act as a negative side magnet.
As ETH is integrated between $4,200 and $4,500, the market remains bound by scope and liquidity driven. Prices are likely to continue to be drawn between these clusters until a critical breakout occurs, with volatility being promoted by the liquidation cascade on both sides.
