Ethereum (ETH) rebounded after tapping a $3,800 liquidity zone but now faces a decisive resistance at $4,060; a clear daily close above $4,060 would likely target $4,265–$4,750, while rejection risks a retrace to $3,800 and possibly $3,600.
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ETH bounced from $3,800 and is testing $4,060 resistance.
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Daily close above $4,060 opens targets at $4,265 and $4,750 with volume confirmation.
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Failure at $4,060 could retest $3,800 and extend down to $3,600–$3,550 liquidity pockets.
Ethereum price rebounds from $3,800; watch $4,060 as the pivot—close above targets $4,265–$4,750, rejection risks $3,600. Read analysis and plan trades.
What is Ethereum’s immediate price outlook after the $3,800 bounce?
Ethereum price rebounded from a $3,800 liquidity zone and now tests the key $4,060 level. A confirmed daily close above $4,060 would likely push ETH toward $4,265 and potentially $4,750, while rejection increases odds of a drop to $3,800 and then $3,600.
How did the $3,800 liquidity zone influence short-term momentum?
ETH’s interaction with the $3,800 zone acted as a liquidity sweep that absorbed sell pressure and triggered a quick recovery to around $3,900. Market analyst Ted Pillows observed this level attracted heavy activity and short-term demand. The bounce shows buyers reacted, but the move remains fragile until $4,060 is reclaimed.
$ETH tapped the $3,800 liquidity level as predicted.
Now, ETH has bounced back but is still trading below the $4,060 support region.
If Ethereum reclaims the support level, a rally will happen.
Otherwise, the chances of a dump towards $3,600 will go up. pic.twitter.com/RNO9QEUhho
— Ted (@TedPillows) September 26, 2025
Even with the bounce, the relief rally has not restored former support decisively. The inability to hold above the $4,060 barrier keeps near-term bias uncertain. Traders are watching volume and daily closes for confirmation of direction.
Why is $4,060 the critical resistance for Ethereum?
The $4,060 region has shifted from prior support into resistance, making it the pivot that defines bullish continuation versus renewed weakness. A daily close above this level would flip resistance into support and validate momentum toward $4,265 and then $4,750 if buying volume persists.
Key confirmation signals include increased on-chain inflows to exchanges or large sell-side order absorption, and a rise in trading volume during the breakout. Without these signs, the price may lack conviction and remain range-bound or move lower.
What is the bearish scenario if ETH fails at $4,060?
If Ethereum cannot regain $4,060, sellers may push price back to the $3,800 liquidity pocket. A clear break below $3,800 would likely accelerate downside toward the $3,600–$3,550 cluster, where the next concentration of liquidity sits.
Risk managers should note that repeated tests of $3,800 increase the chance of a directional break. Position sizing and stop placement should account for increased volatility around these inflection levels.
Frequently Asked Questions
What are immediate ETH price targets after a $4,060 breakout?
A daily close above $4,060 targets $4,265 first, then $4,750 as the extended objective, provided breakout volume confirms the move. Monitor volume and daily candle closes for validation.
How should traders manage risk around $3,800–$4,060?
Use tight position sizing and place stop-losses below confirmed support zones. Consider waiting for a daily close above $4,060 for longs or a decisive break below $3,800 for shorts to reduce false-break risk.
Key Takeaways
- Pivot level: $4,060 is the defining resistance that will determine short-term direction.
- Upside targets: A confirmed breakout targets $4,265 then $4,750, conditional on volume.
- Downside risk: Failure at $4,060 risks re-testing $3,800 and an extension to $3,600–$3,550.
Conclusion
Ethereum’s bounce from the $3,800 liquidity zone shows renewed short-term demand, but the $4,060 level remains the critical pivot for confirming bullish continuation. Traders should watch daily closes, volume, and the $3,800 pocket to manage risk. COINOTAG will monitor updates and provide further analysis as market data evolves.
