Ether bulls need to reclaim $4,700 to regain control.
Ether had a strong rally on Tuesday, rising to $4,579 after absorbing liquidity from a block of daily orders and retesting long-term support at $4,350. Momentum on shorter timeframes remains constructive, but sustainability is essential for continuity.
On the medium-term chart, the price action is currently filling a bearish fair value gap between $4,600 and $4,450, with the risk of extension to the $4,000 range should selling pressure persist.
For this gap to be invalidated, ETH needs to reclaim the equal lows near $4,662 and ensure a decisive daily close above $4,700. This movement would align shorter and longer timeframe structures, restoring bullish momentum and paving the way for $5,000.
On the other hand, a prolonged consolidation below $4,700 would suggest that the rally is being driven primarily by short position closures, where sellers closing positions generate temporary buying pressure while others await higher levels to sell again and push the price down.
If it does not reclaim $4,700, ETH will remain trapped in a decisive range between $4,700 and $4,350, with a break below $4,350 likely triggering a deeper correction, in line with seasonality and a possible shift in market structure.
Until then, the $4,700 remains the pivot point that separates a correction from a new leg up.
