Following its strong rally and rejection at the all-time high, Ethereum has shifted into a corrective phase. Both daily and lower timeframes suggest that the next decisive move hinges on whether buyers can maintain key support zones or whether bears will drive the market into deeper retracements.
ETH Price Technical Analysis
By Shayan
The Daily Chart
On the daily chart, Ethereum has been retracing after its parabolic advance stalled at the $4.8K ATH. The price recently found support around the 0.5 Fibonacci retracement ($4,070), a zone that aligns with the ascending channel’s midline and prior demand levels.
If this support weakens, the next major demand sits within the 0.618–0.786 Fibonacci retracement range ($3,900–$3,660), a region that could act as an accumulation zone if bearish momentum persists.
Meanwhile, the RSI has cooled to neutral near 57, indicating that overbought conditions have been reset, but a clear directional bias has yet to form. Holding above $4,070 would preserve the broader bullish structure, while a decisive breakdown risks extending the correction toward the $3,600–$3,800 range.
The 4-Hour Chart
On the 4-hour timeframe, ETH recently rebounded from the $4.2K support, which overlaps with the ascending trendline. This confluence makes the $4.2K zone a crucial battleground for buyers.
The price action has since developed a short-term consolidation range between $4,200 and $4,400, resembling an inverted head and shoulders pattern. This reflects market indecision: buyers are actively defending support, yet struggle to reclaim resistance.
A confirmed breakout above $4.4K would validate the inverted H&S formation, opening the path for a renewed push toward the ATH region. Conversely, failure to hold the $4.2K support and trendline would expose ETH to deeper retracements, potentially targeting the 0.702–0.786 Fibonacci zone.
Onchain Analysis
By Shayan
Ethereum continues to trade with sharp swings after its rejection from the all-time high, with the liquidation heatmap highlighting where leveraged positions are clustered. These zones often act as magnets for price, as liquidity hunts dominate short-term movements.
During the rally into the $4,800–$4,900 range, ETH triggered a cascade of short liquidations before reversing sharply. This trap left late buyers caught at the top while creating a liquidity vacuum to the downside.
Following the rejection, ETH swept lower into $4,100–$4,200, tapping a dense cluster of long liquidations and fueling the aggressive sell-off observed in mid-August.
At present, the heatmap highlights two critical liquidity zones:
- $4,500–$4,700: A dense cluster of short liquidations that could attract prices higher if buyers regain control.
- $3,800–$3,900: A heavy concentration of long liquidations, still untested, which could serve as a downside magnet if current support fails.
With ETH consolidating between $4,200 and $4,500, the market remains range-bound and liquidity-driven. Until a decisive breakout occurs, price is likely to continue gravitating between these clusters, with volatility fueled by liquidation cascades on both sides.
