According to data from crypto.news, Ethereum (ETH) dropped 4% to an intraday low of $4,329 on Oct. 9 during the Asian trading session, after bulls failed to push past the $4,600 resistance late the previous night. At its current level, ETH has declined roughly 9% from its weekly peak of $4,753, reached on Tuesday amid project-specific catalysts and a broader market rally driven by renewed optimism across the crypto sector.
The recent rally was partly supported by October’s historically bullish trend for digital assets, as well as strong inflows into spot Ethereum ETFs and favorable macro conditions — including rising expectations of a more dovish stance from central banks.
However, momentum began to fade on Oct. 7 when Ethereum faced rejection at the $4,700 resistance for the second time in a month. The subsequent pullback was fueled by profit-taking among short-term traders, broad market liquidations, and a strengthening U.S. dollar — factors that collectively dampened sentiment and pressured ETH prices lower.
Following the latest rejection, Ethereum’s price action has carved out a large bull flag pattern on the weekly chart — a technical formation that typically develops after a sharp rally and a period of downward-sloping consolidation, often signaling the potential for another move higher once the pattern resolves.
At press time, Ethereum (ETH) remained above all major simple moving averages (SMAs) on the weekly chart. The shorter-term SMAs continued to trend above the longer-term ones — a classic bullish setup that signals ongoing strength and sustained buyer dominance.
The Relative Strength Index (RSI) stood at 61, indicating that ETH still has room to climb before entering overbought territory. This suggests that bulls may have additional upside potential before any significant correction occurs.
On the daily timeframe, ETH has also confirmed a golden cross, with the 50-day moving average moving above the 200-day. This pattern is traditionally viewed as a strong bullish signal, often preceding extended periods of upward momentum in the asset’s price.
Currently, Ethereum (ETH) faces key resistance at the $4,500 level — a crucial psychological barrier that also coincides with the upper boundary of its emerging bull flag pattern.
A decisive breakout above this zone could confirm the bullish setup and potentially reignite ETH’s uptrend, first targeting $5,000, with an extended move possibly reaching $8,100 — the measured objective derived from the height of the flagpole added to the breakout point.
Still, analysts are urging caution as ETH hovers near a critical support region. According to popular market analyst Ted Pillows, Ethereum must hold the $4,250–$4,300 range to preserve its bullish structure.
A firm breakdown below this zone could invalidate the bull flag formation and pave the way for a deeper correction, potentially pulling prices back toward the $4,000 level in the weeks ahead.
