Ethereum’s price is showing signs of strain after a recent recovery attempt failed to gain traction. Despite climbing above key resistance levels earlier, ETH is now trading below $4,400 and facing mounting downside risks. Technical indicators suggest that unless bulls regain control, the price could slide toward support zones near $4,220 and even lower.
Ethereum’s Recovery Wave Falters
Ethereum began a fresh recovery after finding support above the $4,200 zone, following patterns similar to Bitcoin’s recent bounce. The price managed to climb past resistance levels at $4,350 and $4,400 before encountering selling pressure from bearish traders.
The latest low near $4,233 marked a temporary floor, but gains have since stalled. A minor bounce above the 23.6% Fibonacci retracement of the recent decline—from a swing high at $4,491 to the low at $4,233—suggests that buying interest is limited. Bulls are now facing stiff resistance near the $4,320 level.
Resistance Building Near $4,310–$4,360
Technical charts show that Ethereum is forming a short-term declining channel with resistance near $4,310. The 100-hour Simple Moving Average is also acting as a barrier, with prices failing to maintain strength above $4,320.
If ETH manages to close above $4,350 in the near term, it could spark a recovery, possibly testing higher resistance points at $4,360 and $4,420. A sustained move above $4,420 might open the door to further gains toward $4,500 and even $4,550.
However, until these levels are cleared decisively, upside potential remains uncertain.
Downside Risks Intensify
On the downside, analysts are eyeing support levels at $4,260 and $4,220 as crucial thresholds. A break below $4,220 could expose Ethereum to deeper declines, with next support points sitting at $4,200 and $4,160. In a worst-case scenario, prices could drop toward $4,120, amplifying bearish sentiment.
“The market is at a critical juncture,” says a crypto analyst. “If bulls can’t break above $4,360 soon, further downside looks increasingly likely.”
What Traders Should Watch
Ethereum’s technical setup suggests traders need to monitor both resistance and support zones closely. A breakout above $4,350 and $4,360 would signal bullish momentum returning, while failure to clear these barriers could reinforce selling pressure.
The declining channel pattern, combined with resistance near the $4,310–$4,360 range and support zones down to $4,120, points to a market in flux. Short-term traders may look for signals near these levels to enter or exit positions, while long-term holders should stay cautious until clearer trends emerge.
Broader Market Context
Ethereum’s price action is unfolding amid a volatile crypto market, where price swings are often influenced by sentiment shifts, macroeconomic factors, and trading volume changes. While some analysts remain optimistic about ETH’s longer-term potential, the current chart patterns suggest that momentum is lacking.
With Bitcoin and other major cryptocurrencies also under pressure, Ethereum’s near-term direction will likely depend on broader market trends and investor confidence.
Final Thoughts
Ethereum’s price warning signals growing uncertainty as bulls struggle to push past resistance levels near $4,310–$4,360. Without sustained buying pressure, downside risks toward $4,220, $4,200, and even $4,160 are becoming more probable.
Traders should approach ETH with caution, carefully monitoring key support and resistance zones to guide their strategies. As technical patterns and market sentiment evolve, Ethereum’s next move could shape the outlook for other major cryptocurrencies as well.
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