Yesterday, Ethereum failed to sustain a break above its all-time high of $4,750 and retreated to the previous local support at $4,400. This pullback seems to be a typical technical correction within a strong bullish trend.
Market oscillators support this view. The crypto remains in positive territory, with ongoing upward momentum and no signs of overheating. Current token volatility aligns with normal 24-hour fluctuations of 3–8%.
Several fundamental catalysts continue to drive growth, i.e. unending institutional inflows into spot and staking ETPs, reports of heightened staking activity, and lasting institutional interest in ETH.
Risks that could impede Ethereum's uptrend include significant sell-offs by major holders, a sudden spike in US Treasury yields, adverse regulatory developments, and technical failures within its network. Any such event could trigger a price decline of around 10%.
The one-to-three-month outlook suggests that the market can test the $5,000–$5,500 range, provided institutional inflows remain steady and no market shocks occur. A drop below the $3,800–$4,000 support zone would shift investor sentiment to neutral-bearish, opening the door to $3,000.
From a short-term perspective, it would be wise to initiate a long ETH trade from a stronger support zone, around $4,240. This level offers the best risk-to-reward ratio.
The overall recommendation is to buy Ethereum from $4,240. Profits are taken at $4,650. Stop loss is set at $4,000.
Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
