ETH Tests Key Demand Zone After Failing to Break Above Weak Highs
Ethereum (ETH) is facing renewed selling pressure after failing to hold above its recent swing high near the $4,800 mark. The second-largest cryptocurrency by market capitalization has retraced sharply toward the $4,200 support zone, signaling potential short-term weakness amid broader market consolidation.
The 4-hour chart shows Ethereum struggling to maintain bullish momentum, with price action forming a lower high below the previous resistance area. The rejection from the highlighted supply zone near $4,700–$4,800 has pushed ETH back into a critical green demand zone between $4,200 and $4,100. This area previously served as a strong accumulation region, where buyers stepped in during late September.
“The $4,200 region is an important structural support for Ethereum,” said BITX market analyst. “If this level holds, we could see a short-term rebound; however, a clean break below may open the door toward $3,850 or even lower liquidity zones.”
Ethereum Price Analysis and Technical Outlook
TradingView data shows ETH/USD currently trading near $4,360, down roughly 1.5% in the last 24 hours. Volume has picked up slightly as sellers attempt to regain control, indicating that profit-taking and short-term bearish sentiment are emerging.
The $4,800 zone remains a weak high, suggesting that liquidity may still exist above that area — a potential future target for bulls if the market stabilizes. For now, traders are closely watching the $4,200 support, which aligns with the mid-range structure and previous breakout levels.
“Ethereum’s price is approaching a key decision point,” According to BITX technical analysts. “Maintaining support at $4,200 could confirm ongoing bullish structure; losing it would likely trigger a deeper correction.”
Key Levels to Watch
- Resistance: $4,700 – $4,800 (weak high/supply zone)
- Support: $4,200 – $4,100 (demand zone)
- Next major support: $3,850
The coming sessions will determine whether Ethereum’s bullish momentum resumes or a deeper retracement unfolds. For now, $4,200 stands as the crucial line in the sand for market participants tracking ETH’s next 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.