Ethereum (ETH/USDT, 4H) – Bounce Setup After Textbook Drop

In my previous analysis, I highlighted the $4,700–$4,800 zone as a critical resistance cluster. ETH was rejected exactly from $4,720 and dropped sharply to $3,850, just as projected. ✅

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🔎 Current Outlook:
• ETH has now reached the lower boundary of its descending channel.
• Price is sitting right on the $3,850 support zone, where buyers are showing early signs of activity.
• Momentum indicators suggest that the downside pressure may be exhausting, increasing the probability of a relief rally.

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📊 Scenarios:

🔸 Bullish Reversal (more likely):
If $3,850 holds, ETH could rebound toward:
• First target: $4,100–$4,200
• Extended target: $4,400

🔸 Bearish Case (alternative):
A clean breakdown below $3,850 would expose the next demand zone at $3,600–$3,700.

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📌 Conclusion:
After a sharp and accurate rejection from $4,720, Ethereum is now testing strong support at $3,850. Given the confluence of channel support and demand, the odds favor a bounce scenario over continued downside.