Ethereum Holds Key Support, Eyes $4K Recovery

Ethereum’s recent price drop appears to be more of a healthy correction than a market collapse. After briefly surpassing $3,800, ETH has pulled back to $3,430, currently resting on the crucial 26-day exponential moving average (EMA). Historically, this level has acted as a strong pivot for bullish continuation, and holding it could set the stage for a push toward the $4,000 mark.

The 26 EMA has cushioned the decline, with today’s rebound from this zone suggesting it may be the local bottom for this correction. Momentum indicators also support the bullish case, as the Relative Strength Index (RSI) has cooled to a neutral 53, giving buyers room to drive prices higher without immediate overbought pressure.

Trading volume shows no significant increase in selling pressure, indicating that buyers are stepping in at these levels. Beneath ETH, a robust support cluster between $2,700 and $3,000—formed by the 50 EMA ($2,992), 100 EMA ($2,900), and 200 EMA ($2,704)—provides an additional safety net should the market retest lower levels.

For the next leg up, Ethereum must break through the $3,600 resistance, which marked the start of the latest pullback. Clearing this hurdle opens the path to the $3,950–$4,000 range, aligning with previous rally highs.

Market sentiment remains largely bullish, and ETH is still trading well above its mid-term trend supports. As long as Ethereum holds the 26 EMA, the structure favors an upward trajectory toward $4,000, with technicals suggesting the potential for recovery in the short term.

This correction may ultimately serve as a launchpad for Ethereum’s next breakout, with key support and improving technical indicators signaling strength beneath the surface.