Ethereum (ETH) is showing signs of weakness after failing to sustain gains above the $4,600 mark. Traders are now closely monitoring the market as bearish momentum builds, potentially pushing ETH below critical support levels. The recent price action highlights a growing risk of further downside if the cryptocurrency cannot reclaim key resistance zones.
ETH Faces Rejection Near $4,750
Ethereum attempted to extend its upward momentum earlier this week, climbing above $4,620 and $4,650, and testing the $4,750 resistance zone. However, the rally lost steam as sellers stepped in, resulting in a sharp retracement. ETH formed a short-term low at $4,414 before entering a consolidation phase.
This pattern suggests that bulls are struggling to maintain control, while short-term bears remain active around the $4,550 level, reinforcing a cautious market sentiment. Traders should note that ETH is currently trading below the 100-hourly Simple Moving Average, a key technical indicator that often signals trend direction in shorter timeframes.
Support Levels That Could Prevent Further Decline
The first significant support level sits at $4,460, coinciding with a short-term rising channel on the hourly chart. If this level fails, Ethereum could move down to $4,420, a critical area that has previously served as a floor for price retracements.
A breach below $4,420 could accelerate selling pressure, opening the door for further losses toward $4,320, and potentially $4,250 in the near term. Analysts also highlight $4,150 as the next major support, a level that could determine whether ETH enters a deeper correction phase.
Investors and traders are advised to monitor these support zones closely. Sustained activity above $4,460 may provide temporary relief, while a breakdown could confirm the continuation of the bearish trend.
Resistance Levels and Potential Recovery
On the upside, Ethereum faces immediate resistance near $4,520, followed by $4,550, where selling pressure has repeatedly capped recovery attempts. The next key resistance sits around $4,585, aligning with the 50% Fibonacci retracement of the recent decline from $4,759 to $4,414.
A decisive move above $4,585 could pave the way for Ethereum to test $4,620 and, if bullish momentum strengthens, challenge $4,720 or even retest the $4,750 resistance in the coming sessions.
However, failure to surpass these resistance levels is likely to keep ETH trapped in a short-term downtrend, as bears continue to dominate price action near critical zones.
Technical Indicators Signal Caution
Short-term charts suggest a weakening momentum for Ethereum, with price action forming a rising channel but struggling to break above resistance. The 23.6% Fibonacci retracement level of the recent decline has seen minor recovery attempts, but bears have maintained control, preventing a sustained rebound.
The 100-hourly Simple Moving Average, currently acting as a resistance, emphasizes the ongoing struggle for bullish dominance. Analysts suggest that ETH needs to consistently close above this level to regain market confidence and attract fresh buying.
Broader Market Context
Ethereum’s current pullback coincides with broader weakness in the cryptocurrency market. Bitcoin and other major altcoins have also faced pressure, indicating a potential short-term correction across multiple assets. Traders should remain cautious, as the market may experience heightened volatility in the coming days.
Institutional investors and traders often watch these critical levels closely, as a sustained move below $4,420 could influence sentiment and trigger further selling. Conversely, strong buying pressure near these support zones could stabilize Ethereum and create opportunities for a short-term rebound.
Key Takeaways for Traders
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Ethereum is currently trading below $4,550 and the 100-hourly SMA, signaling short-term bearish momentum.
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Immediate support levels are at $4,460 and $4,420, with potential downside toward $4,320 and $4,250 if these levels fail.
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Key resistance zones to watch include $4,520, $4,550, and $4,585, with a potential upside target at $4,750.
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Technical indicators show ETH struggling to regain bullish momentum, emphasizing the need for caution in short-term trades.
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Market participants should monitor Bitcoin and broader altcoin trends, as Ethereum often correlates with overall market sentiment.
In conclusion, Ethereum faces a delicate balance between support and resistance in the short term. While bulls may attempt to regain control, current price action suggests that downside risks remain significant. Traders and investors should stay alert to key technical levels, as these will likely dictate ETH’s next directional move.
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