Ethereum’s decline under the $4,000 mark signals renewed bearish pressure, with traders eyeing support between $3,850 and $3,700 while resistance levels around $4,250 and $4,700 remain critical for recovery.
Ethereum Faces Selling Pressure After Losing $4K Support
Ethereum (ETH) has slipped below the $4,000 psychological level, triggering renewed caution among traders and investors. On the 2-hour chart, ETH shows clear rejection from the $4,250 resistance zone, followed by a steady sell-off that pushed prices back toward the mid-$3,900 range.
According to the chart structure, the next demand zone sits between $3,850 and $3,700, highlighted by strong historical buying interest. Below this region, market participants fear potential acceleration toward $3,600, marking a decisive area for bulls to defend.
“Ethereum is in a key retracement phase — the $3,850 level is where short-term buyers might attempt a bounce,” noted BITX crypto market strategist, emphasizing that volume spikes during recent dips suggest active accumulation by large traders.
Resistance Levels Limit Upside Potential
On the upside, Ethereum faces heavy resistance near $4,250, aligned with the mid-range supply zone seen on the chart. A more significant resistance area remains around $4,650–$4,750, a zone that previously triggered multiple price rejections in September.
If ETH reclaims and holds above $4,250, analysts believe a potential retest of $4,500 could follow, though overall sentiment remains cautious.
“Ethereum’s market structure is weakening short term, but as long as higher lows form above $3,700, the broader bullish outlook remains intact,” According to BITX technical analysts.
Trading volume has spiked near the lower zone, suggesting that buyers are defending $3,800, but momentum remains fragile. The Relative Strength Index (RSI) on shorter timeframes indicates oversold conditions, hinting at a possible short-term rebound — though confirmation is still needed through price action.
As of writing, Ethereum trades around $3,978, struggling to regain momentum after breaking below key intraday support. A daily close below $3,850 could invite deeper corrections, while a bounce above $4,250 may restore short-term confidence.
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.