Ethereum (ETH) is consolidating near the critical $3,500 support level following a 13% correction from its recent $4,000 high, marking its first weekly loss in over a month. Despite the pullback, on-chain and technical indicators suggest underlying bullish strength. The daily chart shows ETH retesting $3,500 as support after failing to breach the $4,000 resistance—a level aligning with late-2024 swing highs. A bullish golden cross formation (100-day MA crossing above the 200-day MA) remains intact, while the RSI cooled to 56, allowing room for upward momentum.
A notable whale purchased $300 million worth of ETH via Galaxy Digital OTC during the dip, signaling high conviction amid broader market risk-off sentiment driven by macro pressures. On-chain data reveals the Ethereum Exchange Supply Ratio hit a multi-year low of 0.13, indicating sustained accumulation into cold storage or staking contracts, reducing immediate sell pressure.
Technically, ETH faces resistance at $3,564 (38.2% Fib level) and $3,681 (50-period SMA). A decisive break above $3,565 with volume could target $3,765, potentially reigniting a push toward $4,100–$4,500. Conversely, failure to hold $3,500 risks a drop to $3,267. The 4-hour RSI at 39.5 shows weak momentum, requiring bullish confirmation to avoid deeper correction.