Ethereum May Have Printed Its Bottom — Rebound Setup Points to $4,000 Target

Ethereum recently tested support near $3,000, falling 27% in the past month. However, early signs suggest a local bottom might be in place. Technical indicators show a bullish divergence on the 12-hour chart, indicating fading selling pressure. On-chain metrics support this, as the Net Unrealized Profit/Loss (NUPL) ratio dropped to a low level, suggesting weak hands have exited. Furthermore, large holders (whales) have slightly increased their ETH holdings. Derivatives data points to a potential short squeeze, with nearly $1.2 billion in short positions at risk between $3,320 and $3,740, compared to only $330 million in long leverage. For the rebound to be confirmed, Ethereum needs to close above $3,338, which could lead to a move toward resistance at $3,799 and potentially $4,000 or $4,260. Invalidation of this setup occurs if the price closes below the critical $3,053 support level.

(Source：BeInCrypto)