ETH price tests $4,100 support after double bottom forms

After carving out a bullish reversal, the ETH price has tested a key support level. A bounce could put the price back on course for an upwards move.

Then, rallying 10% to a weekly high Ethereum was trading at $4,232 per unit on Monday.ETH( ) has been pushed back as profit-taking kicked inThe level at which it must hold in order to stop further losses is $4,100.

Ethereum’s decline follows after a pattern of double bottoms was formed on the chart for 4 hours, which is often a sign that an uptrend will reverse. Ethereum formed both the lows and the highs near $3,713 with the neckline at $4,100.

The breakout of this type of structure could lead to an extended trend reversal lasting for many days. In the case of Ethereum, an upward move confirmed above the neckline will open the way for a 10% increase in price to $4,491. Add the depth of the formed double bottom to the breakout.

Nevertheless, caution should be exercised when momentum indicators are sending out mixed signals. MACD is closing in on a cross-over with the Signal Line that would be bearish, and the RSI formed a negative divergence. These are both signs that the upside momentum is fading.

Support on the downside is near $4,000. This psychological level Ethereum must hold to continue on its upward trajectory.

CoinGlass’ 24-hour liquidation map shows that a significant cluster of small liquidations occurs between $4.100 and $4.200. These short liquidations align with the neckline for the double-bottom pattern, and also the upper border of the falling wedge. 

If a clean breakout occurs above this band, it could trigger a short squeeze that would force liquidation of positions with excessive leverage and accelerate the upward movement in price. With so much liquidity stacked in this zone, bulls could find the momentum needed to push ETH toward the $4,400–$4,500 target range.

In the negative, there is a lot of liquidation activity between $4,000 to $3,900. It could be that this region will become a hotspot in the coming months. 

Buyers may act aggressively if Ethereum drops into this area. However, if ETH breaks below $3,900, the chart begins to thin out, indicating weaker liquidity and limited buy-side interest, which could expose the token to heightened volatility and steeper losses, possibly dragging it toward the $3,700–$3,650 region.