🔍 Detailed Analysis of Ethereum (ETH) – Price: $3,493.39
Time Frame: 4 Hours – Snapshot Date: August 3, 2025
📉 First: A Quick Look at the Overall Trend
The price experienced a clear correction from its last peak near $3,814 down to approximately $3,147 before starting to rebound.
This correction pushed ETH to touch the 99 moving average (MA 99), which acts here as a dynamic support area, and the price has bounced off it significantly.
📊 Second: Candle Behavior – What is the Market Silently Telling Us?
Strong Reversal Candles at the Bottom:
Note the long green body candle that appeared at the bottom near $3,147, which is a candle with a very long lower shadow, indicating a strong rejection of low prices.
This candle represents a "Hammer" candle, a well-known reversal pattern that often appears at the end of downtrends.
Price Base Formation:
Small body candles with long lower shadows have repeatedly appeared near $3,200 – $3,250, indicating the entry of cumulative smart liquidity and exhaustion of sellers.
Green Bullish Breakout Candles:
The last candle (before the screenshot) was a strong green candle that broke through the previous consolidation area and closed above the 25 moving average (MA25).
This movement reflects the beginning of new bullish momentum, supported by a slight increase in green trading volume.
📐 Third: Moving Averages and Their Role in Reversal
The price has now returned to trade above MA25 (the pink line) after breaking it, which is the first signal of a short-term positive reversal.
The price is still below MA99 (the purple line), but its proximity indicates a potential upcoming test, and if this level is broken, we may see a rapid price explosion.
🔔 Signals to Watch:
If green candles continue to close above $3,500, and long body candles appear without large upper shadows → this is a sign of real momentum and an imminent breakout.
If long upper shadow candles appear when testing MA99 → this may indicate strong resistance and a return to sideways or corrective movement.
✅ Summary:
🔹 The market is beginning to show real reversal signs from a strong support area near $3,150.
🔹 The behavior of the recent candles reflects a gradual shift in control from sellers to buyers.
🔹 Continuing movement above MA25 and the potential breakout of MA99 will open the path toward the $3,700 – $3,800 area again.
