Ethereum might be on the verge of a bullish reversal, potentially reaching new all-time highs. The OrderFlow Intel method uses AI to help traders spot market trends. Right now, the prediction score is +4 out of 10, suggesting a moderately bullish outlook. Ethereum futures dipped to 4070, in the key watch zone of 4072–4095. Prices have since climbed past important levels like the Value Area Low at 4084 and VWAP at 4111, indicating a possible bottom. The next hurdle is the resistance level between 4188 and 4200, which sellers are actively defending. Keeping prices above 4130 and 4119 suggests an upward trend. If Ethereum breaks through 4188–4200, potential targets could be 4209.5 and 4220–4230. On the flip side, dropping below 4130 and 4119 might lead prices back to 4095 or 4070. Key tools like VWAP, POC, and delta analysis show buyer strength when prices stay above certain levels. OrderFlow Intel combines AI and market profile data to help traders identify important price points, offering insights into possible market movements without making exact predictions. We are seeing a bullish setup in Ethereum, thanks to a significant low around $4070 on August 8th. Since then, prices have risen above key areas like $4119 and $4130, signaling that buyers are absorbing selling pressure. This price action supports a moderately bullish outlook for the upcoming weeks, provided these levels hold. Recent on-chain data backs this technical view, with the total staked Ether now over 48 million ETH, reducing supply on exchanges. Additionally, positive market sentiment has grown following news that several US regional banks are beginning to offer crypto custody services to high-net-worth clients. These factors create a favorable backdrop for the price movement we’re seeing. For derivative traders, this presents a chance to position for a potential breakout using call options. If Ethereum can hold above the key $4188–$4200 resistance zone, it could trigger more upside. Buying calls with strike prices slightly above this range, like $4250 or $4300, may offer a good risk-to-reward ratio for a move toward new highs. The current market structure has similarities to what we saw in early 2024 before a significant price rise. Back then, a period of absorption at a crucial support level led to a multi-week rally. If history repeats itself, breaking through the resistance at $4200 could spark a similar price surge. However, caution is essential until the $4188–$4200 level is surpassed. If the market shows strong selling volume at this level, traders might consider buying puts to protect against a decline. A decisive drop below the $4130 support level would indicate a failing bullish outlook and could bring the $4070 lows back into focus. A practical approach could be to use bull call spreads, which limit potential losses while still allowing for upside if the breakout happens. Monitoring the behavior around the $4188–$4200 price zone is crucial in the coming weeks; this level will likely determine if we are gearing up for a new rally or just a short-term bounce.

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