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ETH Seems Primed to Take Down $4K After Recent Rebound: Ethereum Price Analysis

Summary:
Ethereum has been oscillating within the critical .5K–K range, with its price recently finding support near the lower boundary at .5K. Following this rebound, the bulls are attempting a renewed push toward the K resistance level. Technical Analysis By Shayan The Daily Chart The upward momentum in Ethereum’s price met a pause at the K resistance, which has proven to be a key selling zone. This rejection led to a decline toward the lower boundary of the range at .5K. However, renewed buying activity at this support has triggered another strong push upward, targeting the K threshold. The K resistance is pivotal, as it aligns with Ethereum’s prior swing highs and has repeatedly snubbed bullish attempts. Consequently, the short-term outlook suggests continued

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Ethereum has been oscillating within the critical $3.5K–$4K range, with its price recently finding support near the lower boundary at $3.5K.

Following this rebound, the bulls are attempting a renewed push toward the $4K resistance level.

Technical Analysis

By Shayan

The Daily Chart

The upward momentum in Ethereum’s price met a pause at the $4K resistance, which has proven to be a key selling zone. This rejection led to a decline toward the lower boundary of the range at $3.5K. However, renewed buying activity at this support has triggered another strong push upward, targeting the $4K threshold.

The $4K resistance is pivotal, as it aligns with Ethereum’s prior swing highs and has repeatedly snubbed bullish attempts. Consequently, the short-term outlook suggests continued consolidation within the $3.5K–$4K range. A decisive breakout above the $4K level could pave the way for a broader bullish rally.

The 4-Hour Chart

In the 4-hour timeframe, ETH faced a sharp rejection at the $4K resistance, resulting in an impulsive decline below the middle boundary of the ascending channel at $3.8K. This move reflects the strong presence of sellers at the $4K level, making it a formidable barrier for buyers.

Despite this setback, Ethereum found support near the $3.5K level, where buying pressure intensified. The subsequent bullish momentum pushed the price back above the channel’s middle boundary, bringing it close to the $4K resistance once again.

While buyers remain eager to breach the $4K threshold, bearish divergence on the RSI indicator signals caution. A short-term consolidation below this resistance appears likely before another potential bullish breakout.

Onchain Analysis

By Shayan

Ethereum’s price behavior, particularly its stability at the $3.5K support level, reflects the significant liquidity concentrated below this threshold, as highlighted by the Binance liquidation heatmap. Similarly, the $4K resistance level marks another critical zone of liquidity, primarily associated with short positions placed in anticipation of a price rejection.

These two levels represent the highest concentration of liquidity near the current price. If ETH successfully breaches the $4K resistance, it could trigger a short-liquidation cascade as short-sellers rush to cover their positions. This would likely result in an impulsive price surge as the unwinding of these positions fuels further upward momentum.

However, a breakout in either direction has the potential to ignite a liquidation cascade, intensifying the subsequent price movement. Given the prevailing market dynamics, a bullish breakout above $4K appears to be the more probable scenario.

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