Ethereum Defends $4,090 in Key Test of Support

Yesterday’s reaction brought optimism, with Ethereum forming a bullish engulfing pattern, highlighted with a yellow rectangle on the chart. Such a pattern often serves as an invitation to go long, and many traders see it as a sign of strength at a key level.

Today, however, we’re seeing a small pullback, testing traders’ conviction. Still, sentiment remains constructive: as long as Ethereum holds above $4,090, the bounce can act as a proper long-term buy signal. A decisive break below, on the other hand, would threaten the bullish narrative and could cast doubt over the ongoing bull run.