Ethereum’s price is testing the crucial $4,100 psychological support level after a recent pullback. The token has retraced from its weekly high of $4,232, reached on Monday, as short-term profit-taking entered the market. For ETH to avoid deeper losses, holding this support is critical.

A Potential Trend Reversal

The recent price action has formed a double-bottom pattern on the four-hour chart, a technical setup that often precedes a bullish trend reversal. In Ethereum’s case, the pattern’s two distinct lows were formed near the $3,713 level.

The key to this formation is its neckline, which sits at the $4,100 mark. This level is currently acting as a significant resistance zone. A confirmed and sustained move above this neckline would validate the pattern and could open the door for a significant rally.

Based on the depth of the double-bottom formation, a successful breakout could propel Ethereum toward a price target of $4,491. This would represent an approximate 10% increase from its current level. However, technical indicators have not yet fully confirmed a bullish flip, and a failure to break the neckline could see the price retest lower supports.

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