ETH Faces Selling Pressure After Failing to Hold Key Resistance
Ethereum (ETH) slipped under the $4,270 level on Thursday, signaling a potential short-term correction after its impressive rally earlier this month. The decline comes as traders lock in profits near the $4,850 resistance zone, with ETH now testing crucial support areas that could determine its next move.
The daily chart shows ETH retracing from its recent high near $4,895, where sellers stepped in to cap the advance. The breakdown below $4,220 marks a shift in momentum, with immediate support now lying around the $4,050–$4,100 range. A failure to defend this area could drag the price lower toward the $3,650 support zone, which previously acted as a strong consolidation base.
On the upside, Ethereum would need to reclaim $4,420–$4,500 resistance to restore bullish momentum and attempt another push toward its recent highs. Until then, short-term risks remain tilted to the downside.
“Ethereum is showing signs of exhaustion after its rapid surge,” BITX analyst explained. “The break below $4,220 is significant, and if sellers maintain control, the market could see a deeper pullback.”
Despite the pullback, Ethereum is still up nearly 80% year-to-date, reflecting strong investor interest in the asset amid broader market recovery. However, the latest rejection near all-time highs suggests that buyers may need more time to regroup before mounting another breakout attempt.
In the coming sessions, traders will closely monitor whether ETH can stabilize above $4,100. A rebound could restore confidence and set the stage for another test of $4,500–$4,850 resistance, while a breakdown risks accelerating the move lower toward $3,650.
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.