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Ethereum’s recent rebound is losing momentum, with the cryptocurrency once again facing pressure at critical resistance levels. After climbing from lows near $4,260, Ether has struggled to maintain strength above $4,500, raising concerns of another potential downturn in the near term.
Struggles to Break $4,500
Ethereum showed signs of recovery earlier this week as it bounced from the $4,260 zone, a level that had acted as strong short-term support. Buyers pushed the price above $4,320 and $4,350, reclaiming important levels in the process. This brief rally also helped ETH break past the 50% Fibonacci retracement of the decline from the $4,660 swing high to the $4,261 low.
However, the upside was capped by selling pressure near $4,480 and $4,500. Despite multiple attempts, bulls failed to establish control above these resistance levels. The 61.8% Fibonacci retracement barrier around $4,480 acted as a ceiling, forcing the price back below $4,450.
Ethereum is now trading under both the $4,450 level and the 100-hourly Simple Moving Average. A bearish trend line has also formed on the ETH/USD chart with resistance around $4,460, adding more weight to the downward outlook.
Key Levels to Watch
On the upside, immediate resistance remains at $4,450, followed by $4,480. A stronger hurdle sits at $4,500, a zone that Ethereum needs to clear convincingly in order to shift momentum back in favor of buyers. If ETH manages to break through this region, the next target could be $4,565, followed by $4,650. A continuation above $4,650 may pave the way toward $4,720 in the short term.
On the downside, the $4,375 area is acting as the first line of defense. A decisive move below $4,340 could trigger stronger selling pressure, potentially pushing ETH toward $4,320. If losses accelerate, the price may revisit $4,260 or even $4,150, both of which are seen as critical support zones.
Technical Outlook
Market indicators reflect the cautious sentiment. The hourly MACD for ETH/USD is trending further into bearish territory, signaling growing downside momentum. Meanwhile, the Relative Strength Index (RSI) has slipped below the 50 level, suggesting weakening buying power and the possibility of extended declines.
What’s Next for Ethereum?
Ethereum’s failure to hold above $4,500 is raising red flags among traders. While a breakout above resistance could quickly restore bullish confidence and open the door for further gains, the inability to clear $4,500 leaves the market vulnerable.
For now, Ethereum remains caught between strong overhead resistance and firm support. A break on either side of this range is likely to determine the next major move. Traders will be closely watching the $4,340 and $4,500 levels in the coming sessions, as the outcome could set the tone for Ethereum’s near-term direction.
