Ethereum’s price (ETH-USD) slumped more than 8% on Tuesday, dropping from highs above $4,300 to around $3,940. The decline came amid heavy liquidations across the crypto market as traders adjusted to last week’s volatility.
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According to data from CoinGlass, more than $650 million in leveraged crypto positions were liquidated over the past 24 hours, including roughly $115 million in long Ether positions. The largest single liquidation order occurred on OKX, involving an ETH/USD position worth about $5.5 million.
The CoinGlass liquidation heatmap showed several zones of buyer interest below the current price, with over $740 million in bids clustered between $3,670 and $3,800. This range, analysts said, could provide near-term support if the decline continues.
Analysts See the Pullback as an Opportunity
Traders remain optimistic that Ethereum’s uptrend is still intact, describing the selloff as a healthy correction rather than the start of a reversal.
“$ETH hit the ideal zone for buys and I think it’s ready for a trend switch,” said MN Capital founder Michael van de Poppe, who called the recent pullback an opportunity to accumulate before a move higher. “It needs a higher low and then we’re off toward new highs,” he added.
On the ETH/BTC chart, van de Poppe noted that Ether had fallen to 0.032, which he called an “ideal zone for buys.” Other analysts, including Daan Crypto Trades, said the pair has “held nicely” but needs to break above 0.041 to confirm a sustained uptrend.
Technical analyst Titan of Crypto pointed to a major shift in momentum, noting that Ethereum’s relative strength index has broken out of a multi-year downtrend. “#ETH breakout is loading,” he wrote, projecting potential upside targets between $8,000 and $10,300 if the current fractal pattern continues.
Key Support Levels to Watch as Market Stabilizes
Ethereum’s immediate challenge lies in maintaining the $3,800 support zone, where large buying interest remains. Pseudonymous analyst Chimp of the North said this area could mark the end of the correction, setting up a rebound toward the $5,000 region.
“The altcoin could continue its retracement to retest the $3,800 support before launching another rally,” Chimp said in a post analyzing Ether’s recent moves.
CoinGlass data also suggested that leveraged traders are beginning to re-enter long positions after liquidations reset market sentiment.
Ethereum’s Bull Flag Targets $10,000
Despite the recent volatility, Ethereum remains within a bull flag formation on the weekly chart, which is a continuation pattern that typically signals further upside once resistance is broken.
Ether is currently testing the lower boundary of the flag near $3,870, which has acted as support throughout this pullback. A breakout above the upper trendline at $4,440 could confirm the pattern and open the path toward the next target of $10,050, representing a potential 164% gain from current levels.
However, the daily relative strength index has eased from 74 to 54 in recent weeks, suggesting some consolidation may still occur before another leg up. A daily close below $3,800 could expose the 20-week moving average at $3,700 and the $3,500 zone as possible lower supports.
Key Takeaway
Traders broadly agree that Ethereum’s structure remains bullish as long as key support levels hold. Market sentiment, while cautious after the liquidations, appears to be resetting in anticipation of the next rally.
As van de Poppe put it, the move lower may prove to be a setup rather than a setback, saying that “it needs a higher low and then we’re off toward new highs.”
At the time of writing, Ethereum is sitting at $3,967.21.
