Ethereum Faces Critical Test After Triangle Breakdown to $3.9K

Ethereum is holding near $3,800–$3,900 support after a steep drop, and traders now see this zone as the key to a rebound.

Market volatility is spiking as Ethereum retests broken support, and momentum could flip bullish if prices recover above trendlines.

Ash Crypto believes a dip to $3,500–$3,600 may flush weak positions before Ethereum builds strength for a run toward fresh highs.

Ethereum faced heightened volatility this week as prices slipped closer to key support levels. According to CoinMarketCap, ETH traded at $3,937.33 with a 24-hour volume of $62.8 billion, marking a 2.61% decline. Current trading around $3,917.7 reflects a 5.69% drop from earlier levels

Analyst Ash Crypto on X highlighted the situation, stating, “ETH is following the same plan. We can see a wick to $3500-$3600 level just to liquidate more longs. This retest means the worst part is almost over, and next we should see ETH pumping to new ATHs in late Oct. Just survive for 15-20 more days, we so close to the parabolic run.” His call underscores rising expectations for an eventual rebound after weeks of consolidation.

Pattern Breakdown and Retest Levels

Ethereum’s recent action stems from a triangular consolidation that formed between mid-August and early October. The pattern developed as prices failed to extend gains above $4,700 in mid-August. Lower highs created a descending resistance trendline while higher lows carved out an ascending support. This compression narrowed trading ranges and reinforced the structure.

Source: Ash Crypto

However, the breakout came in early October when ETH pierced below triangle support. Selling pressure accelerated, pulling prices toward the $3,800–$3,900 zone. Consequently, this area now acts as a retest level and critical support. Multiple annotations on Ash Crypto’s chart identify this level as decisive for the upcoming direction.

Path Toward Recovery

Volume readings show increased activity during the breakdown, signaling intense trader participation. Moreover, the current zone marks the projected retest of broken support, now tested as resistance. Prices need to recover the triangle boundary if Ethereum is to restore its upward momentum. Therefore, letting go of $3,800–$3,900 could lead to further losses.

Still, technical projections outline a possible surge toward $5,000 if support holds. This move would represent an almost 28% rise from present levels. Additionally, daily ranges have widened, showing rising market volatility after months of compression.

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