Ethereum has once again failed to reclaim the critical $4K resistance level, leading to a notable decline in price. However, the cryptocurrency has now reached a significant support zone, where a rebound followed by consolidation is anticipated.

By Shayan

The Daily Chart

Ethereum’s $4K price region has proven to be a critical resistance zone over the past year, consistently halting bullish advances due to strong selling pressure.

Most recently, the price faced another rejection at this level, triggering a significant sell-off. This decline was further fueled by Federal Reserve Chairman Jerome Powell’s remarks, suggesting the central bank might pause its current policy of lowering key interest rates.

Despite this setback, ETH has found support at the $3K level, a crucial price zone, leading to a rebound above the $3.5K threshold. Currently, the cryptocurrency is consolidating within the $3.5K–$4K range, with expectations of a potential bullish attempt to retest the $4K resistance following this consolidation phase.

The 4-Hour Chart

On the 4-hour chart, Ethereum’s rejection at the $4K resistance triggered a sharp decline, breaking below the ascending wedge pattern—a clear indication of sellers’ dominance. This bearish momentum pushed the price lower, leading to a pullback before resuming its downtrend.

At present, Ethereum is trading within a significant support zone, defined by the 0.5 ($3.2K)–0.618 ($3K) Fibonacci retracement levels.

This is expected to provide stability in the short to mid-term, with the likelihood of continued consolidation and minor retracements. If this support holds, buyers may re-enter the market, setting the stage for another attempt to challenge the $4K resistance.

By Shayan

Ethereum’s failure to reclaim the $4K threshold triggered significant liquidation