Key Insights
- •Ethereum holds key support after three tests, with targets set at $4,500 and $4,955.
- •Funding rates show heavy shorts, often seen before price rebounds like on October 10.
- •Ethereum network activity hits all-time highs with growing DeFi usage and active addresses.
Ethereum (ETH) is currently retesting a familiar support level after several previous attempts to hold the zone. The price has shown some recovery, but analysts remain cautious as selling pressure continues.
Ethereum Tests Key Support Level Again
Ethereum is once again near a key support area that has been tested three times before. This repeated test shows a potential buildup for a breakout or further decline. According to Donald Dean, Ethereum continues to push the lower boundaries and is retesting the same support area that was tested 3 times.
Current market focus is on a volume shelf at $4,500, followed by a target of $4,955. Both levels are seen as areas of interest where buyers could return, as the $4,955 level also lines up with a previous local high.
Analysts believe that these targets will become valid if the support area remains intact and broader market sentiment improves. Ethereum is trading at $3,848.84, up 1.76% in the past 24 hours, with trading volumes exceeding $36 billion.
Traders Watch Funding Rates and Market Sentiment
Funding rates are showing that traders are shorting Ethereum across major exchanges. According to Bitcoinsensus, this type of setup has often appeared before local bottoms in the past.
Funding rates have been driving Ethereum’s price action lately, and shorts are heavily stacked across exchanges. This pattern is similar to what happened on October 10th, just before Ethereum saw a strong rebound.
Some traders expect a repeat of that move if the current support zone remains in place. There is also caution that a short-term downside may still occur before a more substantial reversal takes place.
Ethereum Network Activity Reaches Record Levels
While price action remains uncertain, network data shows growing activity on the Ethereum blockchain. Analyst Nadezhada noted that average active addresses have reached all-time highs on a 30-day basis. She added that "everyone’s watching price candles, but Ethereum fundamentals are quietly rising."
This rise in user activity suggests continued interest in Ethereum’s ecosystem, especially in decentralized finance (DeFi). More users are interacting with smart contracts, which may reflect increased adoption during the current market conditions.
This growth in usage may support long-term price recovery. Though Ethereum is showing short-term strength, many are watching how the support level reacts in the coming days.