ETH tests key support amid renewed selling pressure and profit-taking near resistance
Ethereum (ETH) has fallen sharply, sliding to the $4,000 region after a volatile week that saw the world’s second-largest cryptocurrency lose over 7% in 24 hours. The decline comes as traders lock in profits near recent highs, while technical indicators signal a cooling phase after months of strong momentum.
According to daily chart data, Ethereum is retesting the major support zone between $4,000 and $4,150, highlighted by the green area. This level coincides with a prior breakout region that fueled the last upward surge toward $4,969, the most recent swing high.
“ETH is at a decisive point,” said one BITX market strategist. “If buyers defend this support, we could see a rebound toward $4,400–$4,500, but a clear break below $4,000 might open the door to deeper retracements around $3,450, the next demand zone.”
The chart also shows that Ethereum has been unable to sustain momentum above the psychological resistance near $5,000, where sellers repeatedly emerged. The broader pattern suggests a possible mid-cycle correction, with traders watching how price reacts at the current support cluster.
Volume has increased during the recent pullback, hinting at stronger participation from short-term traders. Despite the decline, analysts note that Ethereum remains in a long-term uptrend, supported by robust on-chain metrics and ongoing development activity within the ecosystem.
“While the short-term pressure is visible, Ethereum’s fundamentals remain intact,” BITX analyst noted. “As long as the asset holds above $3,900, the broader bullish structure remains valid.”
The $4,000 level remains the critical line in the sand for Ethereum. Holding above it could stabilize sentiment and trigger a fresh leg higher, while a breakdown could shift momentum toward the $3,400–$3,500 support range. For now, ETH trades at a technical crossroads, balancing between sustained bullish optimism and the risk of extended correction.
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.