ETHUSD primed for new breakout after $4,700 retreat

At the start of the week, the ETHUSD pair made another attempt to consolidate above $4,700. This key resistance has held firm against buyer attacks for two months, and the latest bullish effort lacked the momentum for a decisive breakout near all-time highs. The subsequent pullback threatens to breach the uptrend in the short run, thus opening the door toward the $3,900 support. Despite this local weakness, the long-term outlook remains positive. Therefore, the current correction may present a strategic opportunity to accumulate long positions at more favorable prices.

Technical indicators support the case for a continued pullback, with the RSI reversing downward and the Stochastic Oscillator being halfway to oversold territory. Buying interest is likely to re-emerge as Ethereum approaches $3,900, a zone that marks the beginning of the previous uptrend and is currently reinforced by the 100-day exponential moving average (EMA 100). This constructive scenario would only be invalidated by a sustained break below the $3,600 level and the EMA 200.

The dominant tactic among market participants remains buying on dips. This strategy was evident on Tuesday when US Ethereum ETFs attracted over $420 million despite a 4% drop in the crypto. Since early October, ETF inflows have totaled $1.9 billion—a trend mirrored by institutional investors like Bit Digital, which now owns over 150,000 coins (ranking it sixth among all public ETH holders worldwide). The leader, BitMine Immersion, has amassed 2.83 million tokens.

Analysts surveyed by Bloomberg say the surge in demand for cryptos is driven by the same forces that fueled a powerful gold rally: historic erosion of trust in traditional safe-haven currencies like the dollar and yen due to mounting budget, debt, and political concerns. Preference has shifted toward assets not subject to uncontrolled issuance, with ETHUSD standing out as a favored alternative.

The following trading strategy may be proposed:

Buy ETHUSD in the $3,900–$4,200 range. Take profit: $4,700. Stop loss: $3,600.