Ethereum (ETH) is holding firm near the $3,825 support level after a volatile week that saw over $19 billion wiped from the crypto market in liquidations.
Analysts say the leading smart contract asset is showing early signs of recovery, with price targets extending toward the $5,766 resistance zone.
Ethereum Regains Stability After Sharp Sell-Off
Ethereum (ETH) is showing renewed signs of stability following a steep market-wide selloff that erased billions in value across the crypto sector. ETH briefly dropped around $3,500 earlier this week amid panic-driven liquidations before reclaiming the $3,825 support zone.
Ethereum (ETH) holds $3,825 support after a $19B crypto shakeout, eyeing a rebound toward $4,500–$5,766 as the bull flag remains intact. Source: @donaldjdean via X
Data from Brave New Coin shows Ethereum changing hands near $3,842, down 6.5% in the past 24 hours, with trading volume exceeding $103 billion. The market turbulence coincided with broader risk-off sentiment following former U.S. President Donald Trump’s proposal of a 100% tariff on Chinese imports, triggering a sharp reaction across global assets.
According to crypto analyst Donald Dean, the selloff was intensified by a $600 million Bitcoin short and a $300 million Ethereum short from a major whale, sparking nearly $19 billion in crypto liquidations—one of the largest in recent years. “$3,825 appears to be our short-term support after the huge move down from a whale shorting BTC along with mass liquidations,” Dean noted on X. “Monday could show additional weakness, but long-term the setup remains intact.”
Technical Structure Points to Bull Flag Recovery
Despite the turbulence, Ethereum’s market structure remains technically constructive. Analysts highlight a bull flag consolidation forming on the daily chart, suggesting a potential rebound if ETH holds above $3,825.
Ethereum shakes off weak hands—setting the stage for a potential massive rally and a new all-time high. Source: @wacy_time1 via X
A successful retest of this support could open the door to resistance zones between $4,500 and $5,766, while a breakdown below $3,500 might expose the next support region. Indicators such as the MACD bullish crossover and a recovering RSI around 52 support the case for a gradual rebound.
Market analyst AlΞx Wacy believes that the recent liquidation event may have reset market leverage, paving the way for a strong recovery. “Leverage wiped. Liquidity cleared. Weak hands capitulated. This is exactly when massive rallies are born,” Wacy said. “All signs to me point to a new Ethereum all-time high in the coming weeks.”
Wacy’s outlook aligns with several midterm forecasts projecting ETH to trade between $4,300 and $5,175 in October. Longer-term cycle models suggest potential highs near $12,000 by late 2025, supported by institutional inflows and anticipation of a potential Ethereum ETF.
Whales Buy the Dip as Sentiment Shifts
On-chain metrics show that large holders are accumulating aggressively after the correction. Crypto trader Crypto Rover observed that whales scooped up around 230,000 ETH during the downturn, signaling growing confidence in Ethereum’s resilience. “Ethereum is bouncing on the bull market support band,” Rover wrote. “Whale accumulation and negative funding rates point to a strong reversal setup.”
Ethereum rebounds strongly from the bull market support band, signaling resilience amid recent volatility. Source: @rovercrc via X
Similar to Bitcoin’s flash crash in 2021, historical studies show that crypto markets tend to recover partially within one to four weeks following major liquidation events. Analysts note that whale accumulation and renewed spot buying often lead these recoveries, gradually restoring confidence and liquidity to the market.
Ethereum’s Long-Term Fundamentals Stay Intact
While short-term volatility remains a factor, Ethereum’s long-term outlook continues to strengthen. Institutional participation through ETH ETFs, network efficiency improvements targeting ETH gas fees, and continued growth in Ethereum staking are supporting ETH’s ecosystem fundamentals.
Ethereum (ETH) was trading at around $3,842, down 6.53% in the last 24 hours at press time. Source: Ethereum Price via Brave New Coin
For investors and traders following Ethereum price predictions beyond 2025, analysts highlight the role of scaling technologies, Ethereum Layer-2 adoption, and ongoing Ethereum Foundation development as key drivers of future valuation.
Despite market uncertainty, Ethereum’s consolidation around $3,825 may mark the early stage of a broader recovery phase—especially if historical recovery patterns play out in the weeks ahead.