ETHUSD rebounds toward $3,740 after correction

The ETHUSD pair opened Thursday's session at $3,544.06, extending its pullback from the previous day’s local peak of $3,856.98. Prices are still below $3,700, which is an important psychological level. This suggests more selling to take place in the near future and confirms new corrective movements to come into play.

However, technical indicators show that the correction may be coming to an end. The H4 Stochastic Oscillator (5, 3, 3) is now in the neutral zone and showing signs of growth after approaching the oversold territory. A buy signal formed when the %K line crossed above the %D line from bottom to top. This caused a temporary surge in buying pressure and a hike in prices on Thursday.

The MACD indicator (12, 26, 9) reinforces this technical outlook. Although the bar chart displayed declines for four consecutive sessions, the pace of the decline slowed down as the gap between the MACD line and its signal line narrowed. This weakening of downward momentum, consistent with the signals of the Stochastic Indicator, says the market may be preparing to resume its growth.

The pair is now stabilizing between key moving averages—with the EMA (50) providing support at $3,540 and the EMA (20) constraining gains at $3,648. This positioning reflects a typical correction pattern. The shrinking spread between these averages throughout the week highlights diminished bullish strength and growing market uncertainty.

The EMA (50) serves as a critical support level for ETHUSD. As the price approaches this level, traders should watch for two potential outcomes. A bullish reversal could emerge, fueled by the Stochastic's buy signal and the MACD's decelerating bearish momentum. Alternatively, the pair could enter an extended consolidation phase between the key moving averages. Any attempts to resume the upward movement will likely encounter resistance near the EMA (20) and the $3,740.00 level.

Suggested options for trading: 

Buy at the current market price of $3,633.00. Take Profit: $3,740.00. Stop Loss: $3,540.00.

Forecast relevance period: 07/24/2025–07/30/2025.