Ethereum price has regained the failed auction level of $3,425, indicating strong demand. Bulls are aiming to confirm a reversal with a potential rally towards the $3,900-$4,000 resistance zone.
summary
- Failed auction: The $3,425 level has recovered, confirming strong demand.
- Bullish setup: Holding support will favor a rotation towards $3,900-$4,000.
- Downside risk: A loss of $3,425 will reopen the possibility of bearish continuation.
Ethereum (ETH) price has shown new strength after regaining a key technical level at $3,425, a zone previously lost during the recent correction. A rapid recovery above this level suggests that buyers are pulling back and protecting the market from further weakness. This price action increases the likelihood of a bullish reversal forming from current trading locations.
Key technical points of Ethereum price:
- Recovering failed auctions: The $3,425 level has recovered, confirming demand absorption.
- Bullish retest zone: A sustain above $3,425 will open the way to the $3,900 resistance.
- Disable downtrend: Failure to close below $3,425 could indicate a structural reversal.
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ETHUSDT (1D) chart, source: TradingView
From a technical perspective, the recovery of the $3,425 level represents a classic auction failure scenario, where a breakdown below support is quickly reversed by intense buying pressure. This recovery often signals seller exhaustion as demand outstrips supply and short-term market bias shifts towards the bullish side.
If Ethereum holds this reclaimed support, the next major target will be around the $3,900 to $4,000 zone. This zone previously served as a distribution range before adjustment began. If the candlestick closes sustains above $3,425, it will confirm that buyers have regained control and could push the price towards that upper limit in the short to medium term.
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However, losses at this level could reintroduce bearish pressure, invalidating the auction failure theory and exposing Ethereum to further decline towards the $3,200-$3,000 area. Massive inflows play an important role here. Continued presence of buyers is needed to sustain the rally and avoid further collapse.
There are also signs of stabilization across the market, with Bitcoin stabilizing near major supports and altcoins starting to show localized recoveries. Ethereum is resilient near $3,425, so an improvement in overall sentiment could lead to the next sector-wide rally.
What to expect from future price trends:
If Ethereum continues to rise above $3,425, the setup is likely to trend higher toward $3,900-$4,000. A return to $4,000 on a daily close basis would confirm a full bullish reversal and signal a structural move higher. Conversely, a breakdown below support suggests that the downtrend will remain intact and the recovery will be delayed.
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