On the 4-hour chart, Ethereum is currently trading around $3,890 after a strong correction from the $4,600 region. The market structure suggests buyers are attempting to defend a key support area, though selling pressure remains visible.
🟢 Demand Zone
The green zone highlighted on the chart lies between $3,400 – $3,700, which acts as a strong demand area.
In previous price action, buyers managed to push the price upward aggressively from this same zone — therefore, if ETH retests this area, a bullish reaction is highly probable.
Gradual entries within this zone, combined with tight stop losses, could be a cautious yet strategic approach for buyers.
🔴 Supply Zone
The red zone between $4,350 – $4,450 represents the main supply (resistance) area.
Once price approaches this level, selling pressure is expected to increase, possibly creating a short-term top.
Short-term traders may look for bearish reversal signals around this resistance area.
📈 Bullish Scenario
A likely scenario is that the price may first retest the $3,700 area, absorb liquidity from late buyers, and then rally upward toward the supply zone around $4,400.
If ETH breaks and holds above that resistance, the next bullish target could extend to the $4,650 – $4,700 range.
📉 Bearish Alternative
If the $3,700 support level fails to hold, Ethereum may drop further toward $3,350 – $3,400, which represents the last strong support zone.
Losing this level could shift the medium-term structure into a fully bearish phase.
⚙️ Summary
✅ Key Support: $3,400 – $3,700
🔺 Main Resistance: $4,350 – $4,450
🎯 Bullish Target: $4,650 – $4,700
❌ Below $3,700: Expect deeper correction
Overall, the most probable short-term scenario is a pullback toward the demand zone, followed by a potential bullish continuation.
Given the current market setup, the best approach is buying on dips with controlled risk.
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