Ethereum (ETH) traders are closely watching the 4-hour chart as the cryptocurrency tests a critical price level, according to Skew Δ's recent analysis on October 7, 2025. The recent rally marked the fourth tap of a significant resistance area around $4,700, highlighting a pivotal zone that could determine the next major move in ETH's price action. If this level holds as support during the current retest, it could signal strong bullish momentum, potentially leading to a breakout and higher highs. Conversely, a failure to hold might result in a deeper pullback, though it could still form a higher low, maintaining the overall uptrend structure. This setup offers intriguing trading opportunities for both short-term scalpers and long-term holders, with key support and resistance levels in play.

Analyzing ETH's Recent Price Rally and Key Resistance at $4,700

The fourth tap of the $4,700 area during ETH's recent rally underscores its importance as a multi-touch resistance turned potential support, as noted by Skew Δ. On the 4-hour timeframe, this level has acted as a battleground for bulls and bears, with previous taps leading to temporary rejections but increasing buying interest each time. Traders should monitor volume spikes around this zone; higher trading volumes on the retest could confirm bullish intent, suggesting accumulation by institutional players. For instance, if ETH holds above this pivotal price, it might target the next resistance near $5,000, based on historical price patterns. Ethereum price analysis shows that such repeated tests often precede significant breakouts, especially in a market influenced by positive sentiment from upcoming network upgrades and broader crypto adoption. Incorporating on-chain metrics, like rising active addresses and transaction volumes, could further validate this bullish scenario, providing concrete data for informed trading decisions.

Potential Outcomes: Bullish Hold vs. Deeper Pullback

If the pivotal price holds firm, ETH could see pretty bullish continuation, potentially rallying towards new yearly highs. This would align with current market indicators, such as the relative strength index (RSI) on the 4H chart hovering near oversold levels, indicating room for upside. Traders might consider long positions with stop-losses just below the support, targeting a 5-10% move upward. On the flip side, a deeper pullback leading to a higher low would still preserve the bullish structure, offering dip-buying opportunities around $4,200-$4,400, where previous lows have provided bounces. Ethereum trading strategies in this context should factor in multiple pairs like ETH/BTC and ETH/USDT, where correlations with Bitcoin's movements could amplify volatility. Market sentiment remains optimistic, driven by institutional flows into ETH-based ETFs, which have seen steady inflows according to recent reports from financial analysts. This dynamic creates cross-market trading opportunities, linking ETH's performance to stock market trends in tech sectors.

From a broader perspective, this ETH price retest comes amid evolving crypto market conditions, where AI-driven trading bots and algorithmic strategies are increasingly influencing price discovery. Exploring connections to AI tokens, such as those in decentralized computing, reveals how positive ETH developments could spill over, boosting sentiment in related assets. For stock market correlations, Ethereum's price often mirrors movements in tech-heavy indices like the Nasdaq, presenting arbitrage opportunities for diversified traders. Risk management is crucial here; always use position sizing based on volatility metrics, and consider leveraged trading on platforms with tight spreads. In summary, whether ETH holds or pulls back, the setup emphasizes disciplined trading with a focus on support/resistance levels, trading volumes, and on-chain data for optimal entries and exits. This analysis not only highlights immediate trading signals but also underscores long-term potential in the Ethereum ecosystem, making it essential for crypto investors to stay vigilant.

To optimize trading outcomes, consider real-time monitoring of ETH's 24-hour price changes and volume across major exchanges. While specific timestamps aren't available here, historical data from October 7, 2025, points to sustained interest in this $4,700 zone. Ethereum support levels and resistance analysis remain key for predicting movements, with potential for higher lows signaling continued uptrend. Traders seeking Ethereum price predictions should integrate technical indicators like moving averages; for example, the 50-period MA on the 4H chart could serve as dynamic support. Overall, this scenario exemplifies how pivotal price tests can lead to profitable setups, blending technical analysis with market fundamentals for a comprehensive trading approach.