Ethereum must secure a daily close above the $3,850 threshold to maintain bullish momentum and avert a potential corrective downturn to the $3,100 support zone. Technical analysts highlight this level as pivotal for sustaining the asset’s upward trajectory following recent gains.
The 3-day Relative Strength Index (RSI) currently signals overbought conditions, suggesting Ethereum’s recent rally may be overextended and likely to enter a consolidation phase before attempting a decisive breakout above $4,000. Market charts indicate that failure to hold above $3,850 could trigger an ABC correction pattern, driving prices toward the $3,100 region.
Despite correction risks, market structure remains fundamentally bullish. Analysts view any dip to $3,100 as a potential buying opportunity rather than a trend reversal, projecting eventual price stabilization above $4,000 with renewed investor interest. This consolidation phase could establish stronger foundations for future upward movements without requiring RSI to form new highs.