After an eventful days in the market, Ethereum (ETH) is clinging to the critical $4,000 zone, a level that now separates its current consolidation from a potential breakout toward new yearly highs. Data from CoinMarketCap shows ETH trading near $4,016, up 0.7% on the day, with a 24‑hour trading volume of over $55 billion.
Ethereum Battles Key Support
ETH has been oscillating between $3,950 and $4,200 since early Tuesday, repeatedly testing the lower boundary of its range. The $4,000 threshold has become a focal point for traders as volatility compresses following a brief rally that topped at $4,220 earlier this week.
Market analyst Ali Martinez highlighted on X that $3,900 represents a major support zone, referencing Glassnode’s MVRV deviation bands, which map long‑term investor profitability. According to Ali, “if this level holds, Ethereum could climb toward $5,000 or even $6,000,” aligning with the upper resistance bands seen in the on‑chain model.
Indicators Suggest Tight Range Before Breakout
On‑chain and derivatives data show a cooling market after last week’s leveraged wipeout. Funding rates on major exchanges have flattened, while open interest on ETH futures dropped modestly, signs that speculative excess is fading. Historically, such resets often precede more sustainable moves.
Technical indicators reflect similar tension. ETH’s RSI on the daily chart has retreated from overbought territory, suggesting room for renewed upside if buyers defend $3,900. A decisive daily close below that mark, however, could trigger a sharper correction toward $3,700–$3,750, an area that previously acted as resistance in September.
The Road Ahead
As of mid‑October, Ethereum is once again testing investor conviction. If bulls can maintain control of the $4,000 zone, the technical setup could mirror late‑March’s breakout structure that preceded a run to $4,600. But failure to hold this base would likely shift momentum back to range‑bound trading.
For now, all eyes remain on the $3,900–$4,000 band, the line between another short‑term pullback and the start of Ethereum’s next leg higher.