Ethereum Bears Eye $4,000 as Downtrend Deepens

Ethereum is once again facing heavy selling pressure, with the price struggling to stay above crucial levels. After failing to sustain gains above $4,150, Ether has slipped into a renewed decline that could test the strength of the $4,050 and $4,000 support zones.

The world’s second-largest cryptocurrency has been trading in a bearish structure since breaking down from the $4,450 region. Much like Bitcoin, which has also cooled off after recent highs, Ethereum’s momentum appears to be fading as sellers tighten their grip.

At press time, Ethereum is hovering near $4,100, trading below its 100-hourly Simple Moving Average — a sign that bears remain in control.

Failed Attempt to Hold Higher Levels

The weakness began after Ethereum failed to extend gains past $4,450, leading to a steady decline below $4,320 and $4,300. Sellers then pushed ETH further down, piercing through the $4,120 support before briefly touching $4,000.

Although the price staged a modest bounce, reclaiming the 23.6% Fibonacci retracement level of the drop from $4,635 to $4,000, bullish momentum quickly stalled near $4,250. The inability to push higher reaffirmed the bearish outlook.

Currently, Ethereum faces a strong resistance cluster between $4,220 and $4,250, along with a key bearish trend line capped at $4,360 on the hourly chart.

Resistance Levels to Watch

For any recovery to gain traction, Ethereum needs to close decisively above $4,150. Beyond that, resistance levels sit at $4,220, followed by the critical $4,250 zone. A break of $4,250 could invite momentum toward $4,350, aligning with the downward trend line.

Should buyers succeed in pushing through $4,360, it may set the stage for a more convincing rebound. In that case, ETH could retest $4,450 and potentially aim for $4,550, re-establishing its bullish momentum.

For now, however, the weight of resistance suggests that bulls have their work cut out for them.

Ethereum’s Downside Risk

The more immediate concern for traders is whether Ethereum can hold above $4,000. The $4,050–$4,000 area is acting as the first line of defense. If this support fails, ETH could slip into a deeper decline.

A clear break below $4,000 would likely expose the price to $3,880, followed by $3,820. In more severe scenarios, Ethereum could extend toward the $3,750 region, which stands as a stronger historical support level.

Such a move would mark a significant setback for the bulls, potentially putting Ethereum on track for double-digit percentage losses from its recent highs.

Technical Indicators Suggest Weakness

The hourly Moving Average Convergence Divergence (MACD) is currently positioned in the bearish zone, showing that momentum remains on the downside. At the same time, the Relative Strength Index (RSI) has dipped below 50, indicating that sellers are still dominating short-term price action.

Until these indicators show signs of reversal, the path of least resistance for Ethereum appears to remain downward.

Broader Market Impact

Ethereum’s decline comes in line with a broader cooldown across the crypto market. Bitcoin has also struggled to sustain bullish momentum above $115,000, keeping traders cautious. Altcoins, which often follow the lead of the top two assets, have mirrored this pullback.

The lack of strong inflows and reduced speculative activity highlight that traders may be waiting for clearer signals before making aggressive bets. With global macroeconomic uncertainty and upcoming U.S. economic data releases, risk sentiment across markets remains fragile.

Ethereum’s Longer-Term Picture

Despite near-term weakness, many analysts believe Ethereum’s fundamentals remain intact. With growing adoption in decentralized finance (DeFi), tokenization, and institutional-grade applications, Ethereum continues to command significant market confidence.

However, price action in the short term is driven largely by technical levels and sentiment. For now, the $4,000 line is where traders are watching closely. If bulls manage to defend it, Ethereum could avoid a deeper correction and attempt another push toward resistance. If not, bears may gain further control.

What Traders Should Watch

Over the next few sessions, the following levels and signals will be critical:

• Immediate support: $4,050 and $4,000.

• Next support zones: $3,880, $3,820, and $3,750.

• Resistance areas: $4,150, $4,220, $4,250, and $4,360.

• Indicators: MACD momentum and RSI position relative to 50.

• Market context: Bitcoin’s direction and overall sentiment in risk assets.

Final Outlook

Ethereum remains vulnerable as bearish momentum keeps the price below key resistance levels. The $4,000 mark is shaping up to be the decisive battleground. A bounce from this zone could restore short-term confidence, while a breakdown may pave the way for extended losses toward $3,800 or even $3,750.

For now, traders are bracing for volatility, with Ethereum’s next big move likely tied to whether bulls can defend support or bears manage to force another leg lower.