Ethereum’s price is sitting at a crucial support level near $4,100, as traders watch for signs of a potential rebound that could reignite bullish momentum. After a 10% rally earlier this week that sent ETH to a weekly high of $4,232, profit-taking has led to a mild pullback but technical charts suggest a possible upside setup forming.
ETH Holds Key $4,100 Support
Ethereum has retraced from Monday’s high, hovering just above $4,100, a psychological and technical support zone that bulls must defend to avoid deeper losses.
Interestingly, ETH’s recent pullback coincides with the formation of a double-bottom pattern on the 4-hour chart a classic bullish reversal setup. In this case, both lows formed around $3,713, with the neckline sitting at $4,100, which now acts as the key resistance-turned-support level.
A confirmed breakout above this neckline could set the stage for a sustained uptrend. Based on the pattern’s structure, analysts project a potential move toward $4,491, roughly 10% higher from current levels.
Chart setup: A confirmed double-bottom breakout could push ETH toward the $4,400–$4,500 range.
(Source: crypto.news, Oct. 28)
Momentum Indicators Show Mixed Signals
While the chart setup looks promising, short-term indicators suggest traders should proceed with caution.
The MACD line is inching closer to a bearish crossover with the signal line often an early warning of weakening momentum. Similarly, the Relative Strength Index (RSI) has developed a bearish divergence, showing that buying power may be losing steam even as prices attempt to rise.
At the moment, $4,100 serves as immediate resistance, while $4,000 stands as the next strong psychological support zone. A breakdown below $4,000 could invite further selling pressure, but a decisive rebound from this level would strengthen the bullish reversal narrative.
Liquidation Heatmap Suggests Short Squeeze Potential
Data from CoinGlass reveals a dense cluster of short liquidation levels between $4,100 and $4,200 exactly where Ethereum’s neckline and upper wedge boundary align.
This zone could act as a launch pad for a short squeeze, forcing overleveraged traders to cover their positions and potentially accelerating ETH’s move higher. If bulls manage to break and hold above $4,200, momentum could quickly build toward the $4,400–$4,500 target zone.
On the flip side, there’s strong buy-side liquidity between $4,000 and $3,900, making it a likely demand zone where dip buyers may step in. However, a break below $3,900 would expose Ethereum to weaker liquidity levels, opening the door to sharper downside moves toward the $3,700–$3,650 range.
Heatmap insight: A breakout above $4,100 could trigger short liquidations, while a drop below $3,900 risks deeper declines.
(Source: CoinGlass)
Bottom Line
Ethereum’s technical picture is at a critical inflection point. The double-bottom pattern suggests a potential bullish reversal, but short-term indicators show lingering uncertainty.
If ETH can hold above $4,100 and break decisively higher, it could regain bullish momentum toward $4,400–$4,500. However, failure to defend the $4,000–$3,900 support range may invite renewed volatility and deeper corrections.
As always, traders should monitor key levels closely and manage risk carefully the next few days could determine whether Ethereum’s next move is a breakout or a breakdown.
