Key Technical Indicators Point to Downside
Veteran chartist CryptoPatel has issued a stark warning to Ethereum bulls, indicating that the premium zone retest is complete and the broader bearish structure remains firmly in control. According to his latest analysis, ETH has now swept the high-timeframe Order Block and Fair Value Gap situated in the $3,950–$4,050 area. These classic premium liquidity zones needed to be taken before any meaningful reversal could occur. With this objective met, the path of least resistance is once again pointing south.
Bearish Market Structure Dominates
The macro picture for Ethereum is described as unequivocally bearish. The cryptocurrency has printed a textbook bearish shift, characterized by a lower high followed by a decisive lower low on both daily and weekly timeframes. Until the price reclaims and holds above the previous higher low, estimated to be around $3,860, every rally should be treated as a lower-timeframe retracement within a larger downtrend.
Patel's primary downside targets are aligned with strong on-chain and technical confluence. These targets include $3,660, which represents the weekly demand zone and the 0.618 Fibonacci retracement level of the entire 2024–2025 rally. Additionally, $3,500 is identified as a significant level, corresponding to the 2025 volume point-of-control and the previous yearly open.
Social Media Analysis Reinforces Bearish Outlook
Short-Term Outlook and Key Levels
In the short term, any push back toward the $3,800–$3,860 range is flagged as an ideal bearish re-entry zone. A confirmed daily or 4-hour candle close below $3,860 would likely trigger a cascade of stop hunts and long liquidations, thereby accelerating the move toward the $3,660 magnet.
The analysis highlights that while Bitcoin dominance continues to grind higher and macro liquidity conditions remain tight heading into year-end, Ethereum’s relative weakness is particularly notable. The ETH/BTC pair is also exhibiting a pattern of lower highs and lower lows, reinforcing the notion that altcoins in general, and ETH specifically, are still in a distribution phase.
Conclusion: Bears Favored Until Structure Breaks
CryptoPatel's concluding sentiment is clear: "Bearish On $3,800–$3,860 → Best Short entries." Traders who disregard the higher-timeframe structure do so at their own considerable risk. Until $3,860 is reclaimed as support and a new higher high is printed on the charts, the risk/reward ratio heavily favors the bears, who are targeting $3,660 and potentially $3,500 before any structural reversal can even be considered.