- Ethereum tests $4,100 support as Fed rate cut triggers sharp $1.5B liquidations
- Analysts eye $3,700–$3,800 as major ETH accumulation zone if support breaks lower
- ETH’s $4,000 breakout seen as bullish retest after 1,127 days of consolidation
The Federal Reserve’s latest rate cut sparked an unexpected wave of selling across the crypto market, with traders responding to the news in classic “sell the news” fashion. Within 24 hours, more than $1.5 billion worth of assets were liquidated.
Ethereum bore the brunt of the downturn, leading the wave of forced selling and dipping into a key liquidity pocket. Despite the volatility, analysts suggest this retracement could provide dip-buying opportunities if critical support levels continue to hold.
Ethereum Taps Key Liquidity Level
Ethereum slid to $4,147 as of press time, logging a 7.11% daily decline and nearly 10% losses over the past week. With a market capitalization of about $501 billion, the asset remains the second-largest cryptocurrency, though investor sentiment has shifted toward caution.
According to analyst TedPillows, Ethereum touched the $4,100 liquidity zone, which now serves as immediate support. Should this level give way, the downside could stretch toward the $3,700–$3,800 area. He highlighted that this range represents a strong accumulation zone, where demand has previously stabilized sell-offs.
However, there is also upside potential. A rebound from the $4,100 mark could trigger a retest of $4,450. If momentum holds, Ethereum may even extend toward resistance at $4,650 and $4,880. Market participants are closely watching this inflection point to gauge whether bulls can reclaim control or whether bears will force a deeper correction.
$4,000 Seen as Bullish Retest
Another perspective comes from analyst Mags, who emphasized that Ethereum’s breakout above $4,000 should not be underestimated. After consolidating for 1,127 days since its bottom, ETH finally broke above this barrier on the fourth attempt.
The $4,000 level now represents a pivotal zone, and price action indicates a high-timeframe bullish retest. According to Mags, brief wicks below $4,000 are acceptable as long as daily closes remain above. This structure signals underlying strength, making the recent dip look more like a retest than a breakdown.
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