Ethereum Price Analysis: How Low Can ETH Go if $4K Support Is Permanently Lost?
Ethereum has been underneath strain not too long ago after a powerful rally that took the value to just about $5K. While the uptrend stays intact on the upper timeframe, the current rejection and sharp pullback have raised issues a few deeper correction.
This value motion has led to a change in market tone, with merchants carefully watching key assist zones to find out whether or not that is only a dip or the beginning of a broader pattern shift.
Technical Analysis
By Shayan
The Daily Chart
On the each day timeframe, ETH had been climbing inside a clear ascending channel since April, making increased highs and better lows. However, the current drop broke beneath the mid-channel trendline, and the asset is now hovering simply above the decrease boundary of the channel.
The $3.9K–$4K area is a powerful confluence zone, supported by a horizontal demand zone, the 100-day shifting common, and the decrease boundary of the channel. If this stage breaks, the following assist lies round $3.4K, adopted by the 200-day shifting common, which is now situated at round $2,900.
The RSI has additionally dropped to 34, suggesting that bearish momentum is growing, however ETH can be approaching oversold circumstances, the place a bounce turns into extra possible.
The 4-Hour Chart
Zooming into the 4-hour timeframe, the construction seems to be clearly bearish within the brief time period. The value has damaged beneath a key assist at $4.2K and is at the moment following a parabolic correction path. Momentum is weak, and the RSI is deeply within the oversold area, sitting close to 24, which might result in a reduction bounce quickly.
That mentioned, except ETH reclaims the $4.2K–$4.3K space and kinds an area increased high once more, the bias stays bearish. All eyes are actually on the $3.8K-$4K zone, a vital stage that would both set off a powerful rebound or open the doorways for an extra drop towards $3.5K and even decrease.
Sentiment Analysis
Open Interest
Ethereum’s open curiosity has dropped considerably following the current value decline, displaying that many leveraged lengthy positions have been worn out throughout this correction. However, regardless of the pullback, open curiosity stays elevated in comparison with earlier this yr.
This suggests there’s nonetheless a substantial quantity of speculative exercise out there. The sharp discount in OI alerts diminished the speedy danger of a serious liquidation cascade, however the elevated baseline signifies merchants are nonetheless positioning for volatility. If value stabilizes round key assist and sentiment improves, we might see OI climb once more alongside a possible bounce.
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