Ethereum technical outlook shows key resistance and demand zones
Ethereum’s recent rally saw the second-largest cryptocurrency briefly trade above $4,500 before losing momentum and pulling back. The move came after weeks of steady accumulation, but the charts now show Ethereum entering a critical retracement phase that could determine whether the asset continues toward new highs or slips back into deeper consolidation.
ETH/USD touched the $4,500–$4,600 resistance zone, an area marked by prior supply and profit-taking. The rejection aligns with a broader pattern where Ethereum has struggled to sustain moves near major round numbers. Technical analysts suggest that the current retracement is a natural reaction following sharp gains.
“The $4,500 zone was always going to be a test for bulls. A healthy retracement here could actually strengthen the structure for a push higher,” said one of BITX market strategist.
Key support levels to watch
The immediate demand zone lies between $4,200–$4,250, where buyers previously stepped in. A stronger support cluster sits around $3,950–$4,000, an area that fueled the last rebound. A decisive break below this level could open the way to $3,800, but analysts caution that such a move would only signal weakness if sustained.
“Ethereum’s medium-term structure remains bullish as long as the $3,950 floor holds. Losing that zone could shift sentiment quickly,” According to BITX analysts.
Despite the short-term pullback, Ethereum continues to maintain a series of higher highs and higher lows, a sign of underlying strength. The untested “weak high” near the $4,900–$5,000 range also remains a potential upside target if bulls reclaim momentum.
The retracement, therefore, is less a sign of reversal and more a reflection of market dynamics after a strong surge. Traders are closely watching whether ETH stabilizes at $4,200–$4,250, which could provide the springboard for another attempt at $4,600 and eventually $5,000.
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.