ETHUSD Technical Analysis Highlights Critical Levels
Ethereum has retreated sharply, falling to around $3,843 after failing to sustain momentum above the $4,150–$4,200 resistance area. The daily chart reveals a pronounced rejection from this zone, which has historically acted as a formidable barrier for the second-largest cryptocurrency. Analysts are now watching whether $3,800 can hold as a support level to prevent further downside.
The price action shows that Ethereum repeatedly struggled to break through the green resistance band near $4,150, with multiple attempts over the past year ending in pullbacks. This repeated pattern highlights the significance of this region as a long-term ceiling. “The market continues to respect this supply zone, and until we see a daily close above $4,200, bulls remain capped,” BITX market strategist explained.
Below the current price, a critical support zone around $3,700–$3,800 is now in focus. This level coincides with previous consolidation from earlier rallies and could serve as the first line of defense against deeper corrections. Should this support fail, Ethereum may revisit the next major demand area near $3,250, where strong buying interest emerged during past downturns.
Despite the pullback, trading volume remains elevated, signaling heightened market participation. “High volume on declines often reflects profit-taking rather than panic selling,” According to BITX analysts, suggesting that some investors are locking in gains after the recent advance toward $4,969, the cycle high marked on the chart.
For bullish traders, reclaiming the $4,150 resistance is essential to revive upward momentum. A decisive breakout above this level could open the door to a retest of the previous high near $4,969, while sustained weakness below $3,800 would strengthen the bearish outlook.
Ethereum’s drop toward $3,800 support underscores the importance of this technical threshold. Until the market achieves a clear breakout above the long-standing resistance, the path forward remains uncertain, with traders carefully monitoring price reactions at these key levels for clues about the next major move.
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.