Ethereum (ETH) continues to face resistance near the $4,000 mark as bearish momentum dominates the market. After briefly attempting a rebound earlier this week, the second-largest cryptocurrency by market capitalization has slipped back into a consolidation phase, mirroring Bitcoin’s muted performance.
ETH Price Faces Renewed Selling Pressure
Ethereum began the week trading above $4,120 but failed to maintain upward momentum. Sellers quickly took control, pushing the price below key support levels at $4,050 and $4,000. This decline has placed ETH firmly under its 100-hourly Simple Moving Average, signaling sustained short-term weakness.
Technical indicators also highlight a bearish setup, with a visible trend line forming resistance near the $4,000 level on the hourly ETH/USD chart (data via Kraken). The price currently trades near $3,940, with downside pressure likely to intensify if support levels fail to hold.
The recent drop also saw Ethereum fall below the 61.8% Fibonacci retracement level of the upward swing from the $3,708 low to the $4,252 high. This technical breakdown suggests that momentum remains weak and a retest of lower zones is possible if bulls fail to defend the $3,880 threshold.
Key Resistance Levels Ahead
If Ethereum manages to find short-term support above $3,880, it could attempt another bounce. Immediate resistance sits near $4,000, followed by stronger resistance at $4,030 and $4,080.
A decisive close above $4,080 may encourage bullish traders to re-enter the market, potentially pushing the token toward $4,120. Beyond that, the next target lies at $4,200, where a break could trigger renewed momentum and open the door for a retest of $4,250.
However, analysts caution that ETH will need significant buying volume to sustain a breakout. Without confirmation from broader market sentiment—especially Bitcoin’s price direction—Ethereum’s upside potential remains limited in the near term.
Downside Risks Still in Play
Failure to reclaim the $4,000 resistance zone could lead to another round of declines. The first major support lies near $3,880, with additional cushioning around $3,840—the 76.4% Fib retracement of the previous rally.
If bears extend control below $3,840, the next key targets become $3,750 and $3,700. Further losses from there could bring Ethereum down toward the $3,650–$3,620 range, a crucial demand zone observed in recent trading sessions.
Technical indicators such as the Relative Strength Index (RSI) are also leaning bearish, hovering near the neutral 45 level. This suggests that momentum has yet to favor buyers, and any sharp rebound may face selling pressure near overhead resistance.
Market Sentiment and Broader Outlook
Ethereum’s weakness aligns with the broader crypto market’s sideways movement. Bitcoin’s inability to sustain levels above $108,000 has added pressure on altcoins, including ETH. Traders are also monitoring macroeconomic data from the U.S., as renewed concerns over interest rate policy and inflation have dampened risk appetite across global markets.
On-chain data, however, shows that long-term holders continue to accumulate ETH, signaling confidence in its long-term potential despite near-term price volatility. Staking participation on Ethereum 2.0 remains robust, with validators maintaining a steady network yield.
Institutional interest in Ethereum-based products has also stabilized following recent ETF developments, although analysts note that capital inflows remain modest compared to the previous quarter.
What’s Next for Ethereum?
For Ethereum to regain bullish momentum, it must reclaim and close above $4,120 in the short term. A successful breakout above this resistance would indicate renewed investor confidence and could set the stage for a rally toward $4,250 or even $4,300.
Until then, traders should watch the $3,880 and $3,840 levels closely. A sustained move below these thresholds could confirm a deeper correction phase, potentially driving ETH toward the $3,700 zone before any meaningful rebound occurs.
While Ethereum’s long-term fundamentals remain strong—with network upgrades and institutional adoption accelerating—short-term traders are advised to remain cautious. Market conditions suggest limited upside until buying pressure increases and broader risk sentiment improves.
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