Ethereum Price Prediction: Can Bulls Defend $3,800 Support Level?

Ethereum Price Outlook: Can Bulls Defend the $3,800 Level?

Ethereum price has entered a bearish phase following weeks of strong upward momentum. The digital asset has fallen below the $4,000 level, indicating renewed selling pressure. This decline aligns with a broader downturn across major cryptocurrencies, including Bitcoin, Solana, and DOGE. Traders remain cautious, watching for signals of market recovery and potential reversal in the near term.

Analyst Ali Predicts Ethereum Price Pullback

Crypto analyst Ali highlighted that the TD Sequential indicator accurately predicted Ethereum’s recent price pullback. The analyst noted that Ether has now fallen below the $3,900 mark after a clear sell signal emerged on October 20.

According to Ali’s earlier forecast, the TD indicator had flashed a sell warning, suggesting a possible retracement toward $3,900. That prediction has now played out as Ether declined steadily following a local high near $4,100.

SharpLink Gaming Expands ETH Holdings Worth $74.9 Million

SharpLink Gaming, a U.S.-based publicly traded company, has expanded its cryptocurrency portfolio by acquiring 19,271 ETH tokens last week. The purchase, worth about $74.9 million, marks another significant step in the company’s growing involvement in digital assets.

The latest acquisition highlights SharpLink’s confidence in Ethereum’s market strength and long-term potential. With institutional investors showing renewed interest in cryptocurrencies, the company’s move reflects a broader trend of traditional firms deepening their exposure to blockchain-based investments.

Ethereum Exchange Reserves Continue Sharp Decline

Ether reserves held on exchanges have fallen to their lowest levels in recent years, according to data shared by Crypto Rover. The chart from CryptoQuant shows a consistent and steep decline in ETH exchange balances, signaling that investors are moving their assets off exchanges.

Analysts view this as a potential bullish indicator, suggesting that holders are preparing for long-term storage or staking. With exchange reserves now around 15.9 million ETH, market observers anticipate that tighter supply conditions could support further price appreciation in the coming months.

Will Ether Price Hold $3,800 Support Level?

As of the reporting time, the ETH price traded at $3,900, showing a decrease of 4% over the past 24-hours.

After testing resistance near the $4,000 level, ETH struggled to maintain upward momentum and slipped slightly toward the $3,800 support zone.
 

The Moving Average Convergence Divergence (MACD) indicator currently shows mixed momentum. The MACD line hovers near the signal line, signaling a potential slowdown in bullish momentum. A crossover below the signal line could confirm short-term weakness, while a reversal above might spark renewed buying interest.

Meanwhile, the Relative Strength Index (RSI) stands near 43, reflecting moderate bearish pressure. This suggests that Ether is not yet oversold, but lacks strong bullish momentum. Market participants may be waiting for a decisive breakout above $4,000 or a breakdown below $3,800 to determine the next directional move.