Market struggles as Ethereum slips below key resistance and faces pressure near $4,000
Ethereum (ETH/USD) faced intense selling pressure in the latest session, with the second-largest cryptocurrency by market capitalization slipping to $4,016. The decline comes after repeated rejections from upper resistance zones, leaving the token to test a critical support level around $3,950–$4,000.
The 4-hour chart shows ETH tumbling from a recent weak high near $4,850, where momentum began to fade. Bears capitalized on this exhaustion, pushing prices through multiple short-term demand zones. Currently, the green support band at $3,900–$4,000 is acting as the last significant barrier before potential downside continuation.
BITX Analysts emphasize the importance of this region. “Ethereum needs to hold the $4,000 support to prevent further downside toward $3,800. A failure here could accelerate bearish sentiment, particularly given the broader weakness across altcoins,” said BITX technical strategist.
Volume spikes during the sell-off also signal growing caution among market participants. Despite this, buyers have historically stepped in at the $3,900 level, providing a base for recoveries. A rebound could see ETH retesting resistance levels near $4,200 and $4,450, but sentiment remains fragile unless bulls regain control above these zones.
According to BITX market watchers, “The market structure has shifted toward caution. Until Ethereum clears back above $4,400, upside attempts may face strong resistance from profit-taking and bearish flows.”
The broader crypto market has also mirrored Ethereum’s weakness, amplifying volatility as traders eye macroeconomic data and liquidity shifts. For ETH, the outcome hinges on whether the psychological $4,000 level can hold firm.
In summary, Ethereum sits at a decisive turning point. A breakdown below $3,900 could extend losses to $3,600, while a strong defense may fuel a short-term bounce. With volatility picking up, all eyes remain on how ETH reacts around this critical zone in the coming days.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.