As the market volatility continues, Ethereum (ETH) has dropped 3.1% in the daily timeframe and is attempting to hold a key price area as support once again. Despite the dip, some analysts have suggested that the King of Altcoin is set to start a new expansion phase soon.<\/p>\n
On Wednesday, Ethereum fell below<\/a> the $4,000 level for the third time this week, retesting a crucial area before bouncing. The cryptocurrency has been trading within the $3,800-$4,800 price range in the daily timeframe since the early August breakout.<\/p>\n During the recent market correction, ETH briefly lost its local range, reaching a two-month low of $3,435 last Friday. Nonetheless, the price quickly bounced from the lows, reclaiming the $4,000 area over the weekend. Since then, the King of Altcoins has been hovering around the lows, attempting to reclaim the range\u2019s mid-zone but ultimately failing.<\/p>\n As the price retested the $3,900 area, Daan Crypto Trades noted that Ethereum has been able to maintain daily closes above the $4,100 area despite this week\u2019s volatility<\/a>, suggesting that a recovery of this level is still possible today. Nonetheless, failing to hold this area in the daily timeframe could propel a drop to the $3,800 support and risk a potential dip to the $3,400 mark.<\/p>\n The trader also warned that the cryptocurrency must also hold the $4,100 region on the weekly timeframe to maintain its current structure and target a climb to the range highs around $4,800. He affirmed that \u201cthe real fun starts if this can trade and close above $5K. Until then, we\u2019re range-bound within those two levels.\u201d<\/p>\n Similarly, Ali Martinez highlighted<\/a> that ETH could see a 28%-53% rally based on Ethereum\u2019s MVRV Extreme Deviation Pricing Bands. According to the analyst, if the price holds the $3,900 level, which is a major support, \u201cthe Pricing Bands point to a move toward $5,000 or even $6,000.\u201d<\/p>\n Other market watchers have also shared a positive long-term outlook for ETH, suggesting that investors shouldn\u2019t worry about the recent price pullbacks. Analyst Crypto Jelle pointed<\/a> out the 18-month descending broadening wedge formation on Ethereum\u2019s chart, which was broken out of during the Q3 rally.<\/p>\nIs A Repeat Of ETH\u2019s 2021 Playbook Coming?<\/h2>\n