Ethereum Defends $4,090 in Key Test of Support

In today’s technical analysis from the crypto space, all eyes are on Ethereum, where a crucial battle is unfolding around the $4,090 level. This zone, marked in red, was a long-term resistance that had held for months before finally breaking earlier in August. Now, the former ceiling is being retested as support — a classic moment of truth for ETH.

Yesterday’s reaction brought optimism, with Ethereum forming a bullish engulfing pattern, highlighted with a yellow rectangle on the chart. Such a pattern often serves as an invitation to go long, and many traders see it as a sign of strength at a key level.

Today, however, we’re seeing a small pullback, testing traders’ conviction. Still, sentiment remains constructive: as long as Ethereum holds above $4,090, the bounce can act as a proper long-term buy signal. A decisive break below, on the other hand, would threaten the bullish narrative and could cast doubt over the ongoing bull run.

Source: https://www.axiory.com/analytics/technical-analysis/ethereum-defends-4-090-in-key-test-of-support