Opening long positions on ETHUSD as buying interest recovers

The Ethereum (ETHUSD) correction following its sudden surge in early October is nearing its end. The price is now consolidating around $4,000. Several rebound attempts were observed during today’s trading session, but bullish momentum is gradually slowing.

The Stochastic Oscillator (5, 3, 3), with %K at 72 and %D at 69, confirms this trend. Although the lines are still in neutral territory, their convergence and reversal down from near overbought territory suggest that selling pressure is weakening and chances of a short-term pullback are rising.

The Chaikin Oscillator (3, 10) is also lower than its peaks set on October 14, signaling reduced buying activity and weakening of upward momentum. However, its position in positive territory still leaves room for bullish maneuvering if the fundamental backdrop improves.

Ethereum’s approach toward the $4,050–$4,090 area coincides with key Fibonacci levels, as the current price trades between the 38.2% and 23.6% retracement marks. A break above $4,090 could pave the way to $4,285, while a drop below $3,920 could accelerate the decline to the next support at $3,758.75. The technical setup suggests potential consolidation in the $3,920–$4,090 range before the next significant move.

From a fundamental perspective, ETH has been recently pressured by a massive liquidation of positions amid escalating trade tensions between the United States and China. This triggered a sell-off, particularly among holders of more volatile altcoins. However, the current Ethereum correction has been contained by subsequent statements from institutional players like BitMine about purchasing the dip, as well as Pico Prism's announcement of a new network scaling solution, both of which are providing support.

Keep the following trading strategy in mind:

Buy ETHUSD in the $3,920–$4,000 range. Set a Take profit order at $4,285 and Stop loss at $3,758.75.

The forecast remains relevant between October 16 and October 23, 2025.