- Key price levels show potential for a breakout or deeper correction
- Recent lower highs indicate weakening bullish momentum
- Critical support levels tested amid volatile swings
Ethereum has faced multiple rejections at the $4,100 zone, marking it as a stubborn resistance area. Based on the TradingView chart, each time the price approached this region, sellers took control, pushing ETH downward. This level has now become a psychological barrier, capping previous rallies and limiting bullish momentum. For any sustained upward movement, ETH needs a decisive breakout past this resistance, which hasn’t happened yet.
Another key area to watch is the mid-$3,700 zone, which previously served as a support but has now flipped into resistance. The pattern of lower highs is concerning for bulls, as it suggests buying pressure is fading. If ETH can reclaim this level, a run toward the $4,000 mark could be back on the table. But so far, sellers have been aggressively defending these price points, making it difficult for ETH to establish a strong bullish trend.
Support Levels Being Tested
Ethereum recently bounced from the $1,750 level, which acted as a strong support during the latest downturn. This level has historical significance, as it was previously a demand zone where buyers stepped in aggressively. The question now is whether this support will hold if another retest happens. If ETH falls below this zone, the next key support lies near $1,600, a level that hasn’t been tested in months.
The pattern of lower lows suggests that the market structure is tilting in favor of the bears. ETH’s inability to hold above the $2,200 level has resulted in repeated dips toward its current support region. However, buyers have shown resilience here, leading to temporary rebounds. If ETH can establish a higher low and break out of this downward structure, sentiment could shift more favorably toward the bulls.
Market Sentiment: Uncertain, But Not Fully Bearish
Ethereum’s recent price action suggests a market that’s still figuring out its next major move. Despite lower highs, there hasn’t been a full collapse, meaning some buyers still believe in the upside potential. One of the more interesting developments is the consolidation happening between $1,750 and $2,200, creating a tight trading range.
A decisive move out of this range will likely set the next trend. A breakout above resistance would indicate renewed bullish confidence, potentially targeting the $2,500 zone. Conversely, a break below support could accelerate selling pressure, sending ETH toward the $1,600-$1,500 range. Traders should keep a close eye on these key levels for signs of the next major shift in momentum.
Ethereum, originally launched in 2015, remains the leading smart contract platform. It has played a key role in the development of DeFi and NFTs, making it a cornerstone of the crypto industry. Whether it’s institutional adoption or on-chain innovation, ETH continues to be a significant player in the broader market.
