After a powerful rebound earlier this year, Ethereum now faces renewed selling pressure below $4,000, testing key support that could define its next major move.
Ethereum (ETH) has dropped below the $4,000 mark, signaling a possible slowdown in bullish momentum after months of strong gains. The decline comes as traders weigh broader market uncertainty and reduced trading activity, pushing ETH toward a crucial support region near $3,900. The current pullback highlights growing caution among investors despite Ethereum’s long-term bullish structure.
The daily chart shows a clear transition from a bearish trend that dominated earlier this year to a bullish breakout in late spring. Ethereum’s breakout from the descending channel around $2,300 fueled a sustained rally that peaked near $4,600. However, the recent pullback has brought the asset back toward its support range between $3,850 and $3,950.
Technical indicators suggest that ETH remains in a consolidation phase, forming a descending channel from its recent highs. The gray resistance zone near $4,200–$4,400 continues to cap upside moves, while the green support region has so far prevented a deeper breakdown.
BitXJournal market analyst commented, “Ethereum’s price action shows a healthy correction after months of rallying. The $3,900 level is the key to watch — holding it could keep bulls in control, but a close below might open the door to a drop toward $3,600.”
Despite short-term weakness, on-chain metrics show steady accumulation from long-term holders, suggesting confidence in Ethereum’s fundamentals. Network activity and DeFi participation remain robust, though transaction volumes have slightly cooled compared to early Q3.
BitXJournal experts noted, “Ethereum’s pullback looks technical rather than structural. If the market maintains its higher low pattern, we could see a retest of $4,300 once macro conditions stabilize.”
Ethereum’s decline below $4,000 marks a key inflection point for traders. Holding above the $3,850–$3,900 support zone could reinforce bullish sentiment and pave the way for another leg up. However, a sustained break lower may shift momentum back to sellers, setting up a potential retest of $3,600–$3,700 before any significant recovery emerges.
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.