Ethereum Price Struggles Beyond $4K: Will the Bulls Return?

The Ethereum market is currently witnessing some intriguing dynamics, with its price making notable corrections from the significant $4,080 resistance zone. As it stands, ETH is trading below the $4,000 mark, displaying signs that could hint at further bearish trends. This article delves into the recent price movements and explores potential scenarios for Ethereum’s trajectory.

Current Ethereum Market Overview

Ethereum has initiated a downward correction after reaching a peak of $4,093.

The cryptocurrency is currently above $3,920, maintaining a position over the 100-hourly Simple Moving Average.

There was a notable break below a crucial bullish trend line, previously supported at $3,965, on the ETH/USD hourly chart via Kraken data.

For a potential upward movement, Ethereum needs to remain above the $3,840 support zone.

Ethereum Price Corrects Some Gains

Ethereum’s price maintained robust support above the $3,750 zone, establishing a foundation that facilitated a fresh surge beyond $3,920, outperforming Bitcoin in the process. This bullish momentum propelled ETH past the $4,000 resistance, testing the $4,080 threshold. However, after hitting a high of $4,093, ETH faced a downside correction, slipping below the $4,050 and subsequently the $4,000 levels.

The retracement saw the price drop beneath the 23.6% Fibonacci retracement level, calculated from the upward movement between the $3,680 swing low and the $4,093 high. Additionally, a critical breach occurred below the bullish trend line, with support at $3,965 on the hourly chart of ETH/USD. Despite these corrections, Ethereum’s price is still trading above $3,920, aligning with the 100-hourly Simple Moving Average.

Resistance and Future Prospects

On the upside, Ethereum is encountering resistance near the $3,960 mark. The initial major resistance can be observed around the $3,980 level, while the primary barrier is forming close to $4,000. Should ETH decisively break above the $4,000 resistance, it could pave the way for a rally towards the $4,080 resistance zone.

In the event of an upward breakthrough beyond the $4,080 resistance, Ethereum may see increased gains in the ensuing sessions, potentially ascending towards the $4,150 resistance area or even reaching $4,220.

Potential Risks: Are More Losses on the Horizon for ETH?

If Ethereum struggles to overcome the $4,000 resistance, it might embark on another downward trajectory. Immediate support on this path lies near the $3,920 level, with the first significant support zone stationed around $3,880. A pronounced fall beneath the $3,880 support could drive the price closer to the $3,840 support level.

In the scenario of further declines, Ethereum might be pressured towards the $3,770 support region shortly, with the next critical support positioned at $3,650.