The closest defensive option for Eth was $4K and $3,700, but the Visible Range Profile indicated that these regions had yet to establish themselves as a reliable support zone. If bears take advantage of these cracks, the lack of demand above $3,500 would cause ETH to fall another 10% before moving to a stronger support area.

Meanwhile, there were plenty of defensive resources available for less than $3,650. A $3,350 support line has already aided ETH during a mini-correction in mid-October.

To avoid a bullish thesis, bears would need to close below the horizontal channel's mid-line and the 200-SMA (green). A potential drop all the way up to $2,700 would then pose a serious threat. A possible decline all the way up to $2,700 would then become a serious threat.

Reasoning 

The current correction in ETH was long overdue, according to the daily RSI. Lower peaks along the RSI revealed a bearish divergence in relation to ETH's price action, indicating a possible decline. Indeed, ETH was headed for further losses as the MACD and Directional Movement Index approached bearish crossovers. Expect these indicators to remain above their respective half-lines, as ETH was very much in a bullish trend.

Conclusion

If ETH falls below $4,000 and $3,700, expect bulls to keep the price within a strong support zone of $3,500-$3,100. With the addition of new longs, ETH would launch another attack at $4,400, aiming for a new ATH.