Ethereum is showing early signs of stabilization after a volatile week, with traders eyeing a potential rebound from the $4,250 support zone, according to recent on-chain and technical analysis shared by top crypto traders.
Ethereum Holds Key Support at $4,250
As shown in data from TradinView, Ethereum is trading around $4,335, down 3% over the past week.
Despite the decline, price action suggests that ETH is forming a base above the critical $4,250 level, which has served as support multiple times since early October.
Crypto analyst Ted Pillows noted that if this level holds, Ethereum could rebound toward $4,500–$4,800, though failure to maintain support could lead to a correction near $4,000.
“Still Early, Still Cheap” – Rainbow Indicator Flashes Opportunity
Market strategist Merlijn The Trader highlighted Ethereum’s long-term strength using his “Rainbow Indicator.” He explained that every time ETH touched the blue or green zones in past cycles, it marked a generational accumulation opportunity, while red zones historically signaled tops.
“We’re nowhere near red yet. Still early. Still cheap. Still time,” Merlijn wrote, suggesting Ethereum remains undervalued in the broader cycle.
The chart shows Ethereum trading in the “Still Cheap” zone, far from the overheated “Take Profit” levels, hinting at further upside potential once market sentiment stabilizes.
Coinbase Rally Adds Bullish Momentum
Adding to the optimism, Crypto Rover pointed out that Coinbase ($COIN) shares are showing renewed strength – historically a bullish signal for Ethereum. Correlation data suggests ETH prices often mirror Coinbase’s performance, as exchange trading volumes and investor interest tend to rise in tandem.
Outlook: Accumulation Before Expansion
While short-term volatility remains, analysts agree that Ethereum’s market structure is resilient above the $4,200–$4,300 region. As institutional demand grows and network activity continues to strengthen, ETH could be setting up for another leg higher in the months ahead.
For now, traders are watching whether the $4,250 support can sustain buying momentum, a key level that could define Ethereum’s next major move toward $5,000 and beyond.