Ethereum Price Recovery Strengthens as Key Levels Signal a Potential Rally Toward $4,200

Ethereum is showing renewed strength after sliding to recent lows, with the ETH price beginning to rebound as buyers regain control. The market has confirmed support near the lower range, and steadier candles across critical zones indicate improving short-term structure. With pressure easing and momentum shifting, attention now turns to how far Ethereum can climb before year-end.

ETH currently trades near $2,986, holding above its higher-low formation around $2,772. This pattern signals an early structural reversal and suggests that the long-running downward regression channel may be losing influence. The next major obstacle sits at $3,058—an area where Ethereum previously failed several times. A clean recovery above this level would strengthen bullish conviction and open the door to a move toward $3,618, a zone that triggered notable reactions earlier in the year. Once ETH clears that region, the path toward the $4,200 target becomes far more realistic, especially with the broader recovery structure aligning with a potential breakout leg.

Adding to the positive momentum, a bullish MACD crossover has formed, with the indicator sharply lifting from its lower range. Since MACD often flips early during trend shifts, this reinforces the growing probability of a sustained recovery. Market conditions also benefit from a 2.11% decline in exchange reserves—a sign that selling pressure is decreasing as fewer coins sit on exchanges. Historically, reduced supply has supported stronger upside reactions when Ethereum approaches major resistance zones.

Analysts also highlight Ethereum’s strong performance during past upgrade cycles. During the May 2025 Pectra cycle, ETH surged 55% in 35 days and 168% in 109 days. With the upcoming FUSAKA upgrade scheduled for December 3, expectations are rising for another post-upgrade rally. Models suggest a potential move toward $4,500 in the following month, which aligns closely with the current technical target of $4,200 before year-end.

With improving structure, tightening supply, and favorable upgrade catalysts, Ethereum appears well-positioned to finish the year on a strong upward trajectory.