ETH price is testing a crucial support level after carving out a bullish reversal pattern. Could a bounce from here put it back on track for a strong upward move?

After rallying 10% to a weekly high of $4,232 on Monday, Ethereum (ETH) has pulled back as profit-taking kicked in, slipping close to psychological support at $4,100, a level it needs to hold to prevent deeper losses.

Ethereum’s slump follows after it shaped a double-bottom pattern on the 4-hour chart, a setup that often leads to a reversal to an uptrend. In Ethereum’s case, both lows of the pattern formed near the $3,713 level, with the neckline sitting right around $4,100, which now acts as a key resistance zone.

ETH price has formed a bullish reversal pattern on the 4-hour chart — Oct. 28 | Source: crypto.news

A breakout from this kind of structure can lead to a sustained trend reversal for days. For Ethereum, a confirmed move above the neckline opens the door for a rally toward $4,491, up 10% from current levels. The target is calculated by adding the depth of the double bottom formed to the breakout point.

ETH technicals yet to flip bullish

However, some caution is warranted with momentum indicators sending mixed signals. The MACD line appears to be closing in on a bearish crossover with the signal line, while the RSI has formed a bearish divergence. Both are signs that upside momentum may be fading in the short term.

For now, $4,100 is acting as the immediate resistance zone, while support on the downside lies near $4,000, a psychological level Ethereum needs to hold if it wants to stay on its upward path.

According to the 24-hour liquidation heatmap from CoinGlass, a notable cluster of short liquidations is visible between $4,100 and $4,200, aligning with the neckline of the double-bottom pattern and the upper boundary of the falling wedge identified earlier.

Source: CoinGlass

A clean breakout above this band could ignite a short squeeze, forcing liquidations of overleveraged positions and accelerating upward price action. 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.

On the downside, the heatmap shows considerable liquidation interest between $4,000 and $3,900, suggesting that this area could act as a strong demand zone in the near term.

If Ethereum dips into this region, buyers may step in aggressively to defend key support. 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.