Ethereum Holds Key Level at $3,947 as Analysts Watch pwEQ Reclaim for Next Move Higher

Ethereum holds near $3,947 pwEQ as traders watch for a breakout toward $4,200 and beyond.

Fed’s 25 bps rate cut boosts crypto sentiment, driving higher ETH trading volumes and open interest.

Wyckoff reaccumulation pattern shows ETH preparing for Phase D breakout toward $4,478 targets.

Ethereum (ETH) trades near $3,945 after testing a crucial support range between $3,875 and $3,900. The price remains at a key technical level where traders are monitoring the pivot equilibrium (pwEQ) at $3,947. Sustained movement above this threshold could confirm renewed upward momentum as the broader crypto market reacts positively to the Federal Reserve’s 25-basis-point rate cut.

Ethereum Holds Key Level Amid Rebound Effort

According to an analysis prepared by Carl Moon, Ethereum’s price declined from $4,200 before finding support near $3,875. Buyers defended this level, causing a short-term rebound toward the pwEQ zone at $3,947.58

This area now serves as the primary level that Ethereum must reclaim to maintain bullish structure and pursue further gains. Market data shows ETH consolidating above the lower range after its recent decline. Trading volume has increased around the $3,900 zone, reflecting active market participation

The 4-hour chart indicates expanding volume and a recovery structure forming as buyers regain control. If momentum continues above $3,947, Ethereum could revisit resistance near $4,075 and later $4,200. A close below $3,875, however, could expose lower liquidity areas around $3,750.

Fed Rate Cut Sparks Renewed Market Optimism

The Federal Reserve’s 25-basis-point rate reduction has boosted risk sentiment across digital assets. Analysts observed rising trading volumes in Ethereum futures and altcoins following the policy move. According to data from Coinglass, Ethereum futures open interest rose to $47.03 billion, reflecting consistent institutional participation.

Source: TraderTardigrade(X)

On-chain data supports growing confidence as investors continue withdrawing ETH from exchanges. Exchange netflows recorded $7.9 million in outflows on October 30, showing steady accumulation. Token Terminal data further reported record transaction volumes and user activity on Ethereum’s network, driven by DeFi and NFT usage.

Trader Tardigrade noted that Ethereum is completing Phase D of the Wyckoff reaccumulation pattern, positioning the asset for a potential breakout. Sustaining levels above pwEQ could enable ETH to target $4,478 in the coming sessions as altseason momentum strengthens.

The post Ethereum Holds Key Level at $3,947 as Analysts Watch pwEQ Reclaim for Next Move Higher appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.