The price of Ethereum (ETH) faces a decisive moment this October 22. The cryptocurrency is testing the critical support for Ethereum price at the $3,800 mark. This occurs after a sharp drop of nearly 18% in just two weeks. Market sentiment, measured by the “Fear & Greed” index, stands at “Extreme Fear” (25).
Technical data paints a complex picture. The RSI (Relative Strength Index) is at 41.62, suggesting selling pressure might be easing. Additionally, the price is trading near the lower Bollinger Band ($3,799). This indicates a technically oversold territory. Immediate support lies between $3,787 and $3,800. However, the vital macro support is the 200-day exponential moving average (EMA). This level sits around $3,535. A break below could send ETH toward $3,550.
This support test is relevant following the fall from $4,700 in early October. The market is caught between fear and opportunity. Bullish catalysts are on the horizon. These include institutional accumulation, which totaled $292 million in recent purchases. A Federal Reserve (Fed) rate cut is also expected on October 29. On the other hand, Bitcoin’s dominance (57.43%) is draining liquidity from altcoins.
Can Ethereum Avoid a Deeper Fall Toward $3,500?
Analysts are watching key resistance levels for a potential recovery. The first barrier for the bulls is found in the $4,040-$4,091 zone. Breaking this level is the first step. Nonetheless, the most crucial resistance is between $4,150 and $4,260. The 50-day and 100-day moving averages converge there. A decisive break above this area could push the price toward $4,500. Investors remain cautious.
Ethereum is at a technical and sentimental crossroads. In the short term, volatility seems assured as the direction is defined. The long-term fundamentals of the blockchain network continue to attract interest. The upcoming “Fusaka” upgrade in November and the 9-year low supply of ETH on exchanges are positive signs. The price behavior at the critical support for Ethereum price of $3,800 will dictate the trajectory for the end of 2025.
