Arista Networks stock: Support zone test could define next major move

Arista Networks (ANET), a leader in cloud networking solutions, finds itself at an important technical level that's captured my attention. After peaking near $165 back in September and October 2025, the stock has shed considerable ground and now sits at $125.06. Price is now just a stone's throw above a support level that's proven remarkably reliable over the past year.

Let's examine what's happening here. That yellow line you see at $119.78 isn't just another arbitrary price point. This level has functioned as a dependable floor on multiple occasions throughout 2025—first in the early months, again in August during the broader market volatility, and most recently in late November and December. Each time ANET approached this zone, buyers stepped in with conviction. That kind of repeated respect for a price level tells us something important: institutional players view this area as value territory.

What makes the current setup particularly interesting to me is the strength of the recent bounce. After testing $119.78 in late November, ANET has managed to push roughly 18% higher, suggesting that buyers remain engaged. However, the stock hasn't exactly exploded off this support. Instead, we're seeing a more measured recovery, which leaves the door open for both scenarios.

The bullish case hinges on ANET holding above $119.78 and building momentum from here. If buyers can defend this level decisively, we could see a retest of the $140-145 range as the first meaningful resistance zone. That would represent a solid 12-16% upside from current levels. For those considering entries, a break above $128 with expanding volume might offer a cleaner risk-reward setup.

But here's where discipline matters: if ANET slices below $119.78 on heavy volume, the technical picture deteriorates quickly. That secondary support at $106.88 becomes the next logical landing spot—an uncomfortable 15% drop from where we're trading now. This isn't a level to ignore.

The market's giving us a clear framework. Watch how ANET behaves around $119.78 in the coming sessions. Defend it, and the bulls control the narrative. Break it, and we're likely headed lower. Either way, this chart is setting up for a definitive move that should reward patient traders who respect the levels.