2 Short-Term Levels ETH Bulls Should Watch This Week

Ethereum continues to consolidate between institutional zones, with clear boundaries defined by support at $3,400 and resistance at $4,600. The current symmetrical triangle formation signals a period of compression, with potential for a breakout in either direction.

Technical analysis

By Shayan

The daily chart

On the daily chart, ETH remains stuck in a mid-range structure between the $3.4K institutional demand zone and the $4.6K supply zone. The rejection of $4,200 coincided with a retest of the broken ascending trend line and the 100-day moving average, both now acting as resistance levels.

Momentum has slowed and ETH is currently near the midline of its broader range and below the 100-day MA. The 200-day MA around $3,100 continues to serve as final dynamic support, while the demand zone of $3,400, a level that soaked up liquidity during Trump’s tariff slide, has repeatedly attracted buying interest.

For ETH to regain bullish momentum, the price must close decisively above $4,200, reclaiming the midrange and establishing a move towards $4,600. Until that happens, the broader structure will remain neutral to slightly bullish, supported by the long-term uptrend and the institutional accumulation zones beneath.

The 4 hour chart

The 4-hour time frame shows ETH forming a symmetrical triangle, reflecting market indecision following the recent sell-off. The upper boundary of the pattern is aligned with the resistance at $4,000, while the lower boundary is supported by the short-term range low of $3,800.

This structure represents a liquidity compression phase, where volatility continues to narrow before a directional breakout. If the bulls manage to break the upper trend line, a rally towards $4,400-$4,600 would be expected, coinciding with the upper range boundary and the institutional supply zone. On the contrary, a drop below $3,700 could expose the $3,400 demand zone once again.

Until confirmation, the price is expected to oscillate within this increasingly tight range, a typical setup for traders expecting an expansion in volatility.

Sentiment analysis

By Shayan

Ethereum funding rates across all exchanges have recently turned negative, reflecting sentiment seen during major market lows in previous cycles. Historically, periods of negative funding rates, where short positions dominate and perpetual traders pay a premium to hold them, have preceded strong bullish pullbacks, as seen in late 2024, before the rally towards $4,800.

The current negative readings suggest fear-driven short-selling pressure, which, paradoxically, often acts as fuel for bullish moves once selling exhaustion occurs. If this condition persists as ETH holds structural support near $3,800 to $3,400, it could set the stage for another brief rally driven by contraction towards the upper range.