• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Ethereum Price Analysis: What's Next After a 15% Drop?

user avatar

by Giorgi Kostiuk

7 months ago


Ethereum once again failed to break the critical $4K resistance level, leading to a notable price decline. However, the cryptocurrency has now reached a significant support zone, where a rebound followed by consolidation is expected.

The Daily Chart

Ethereum's $4K region has been a critical resistance zone over the past year, repeatedly halting bullish advances due to strong selling pressure. Recently, the price faced another rejection at this level, triggering a significant sell-off. This decline was further fueled by Federal Reserve Chairman Jerome Powell's remarks, suggesting a potential pause in the central bank's current policy of lowering key interest rates. Despite this setback, ETH has found support at the $3K level, a crucial price zone, leading to a rebound above the $3.5K threshold. Currently, the cryptocurrency is consolidating within the $3.5K–$4K range, with expectations of a potential bullish attempt to retest the $4K resistance following this consolidation phase.

The 4-Hour Chart

On the 4-hour chart, Ethereum's rejection at the $4K resistance triggered a sharp decline, breaking below the ascending wedge pattern—a clear indication of sellers' dominance. This bearish momentum pushed the price lower, leading to a pullback before resuming its downtrend. At present, Ethereum is trading within a significant support zone, defined by the 0.5 ($3.2K)–0.618 ($3K) Fibonacci retracement levels. This is expected to provide stability in the short to mid-term, with the likelihood of continued consolidation and minor retracements. If this support holds, buyers may re-enter the market, setting the stage for another attempt to challenge the $4K resistance.

Onchain Analysis

Ethereum's failure to reclaim the $4K threshold triggered significant liquidations in the futures market, followed by a flash crash that appears to have significantly cooled broader sentiment. The chart illustrates the funding rates metric, a reliable indicator of futures market sentiment. While Ethereum's aggregate funding rates saw a sharp spike last week, the rejection at $4K led to substantial liquidations, bringing funding rates back to levels conducive to a bullish trend. This cooling effect could pave the way for a more sustainable rally in the coming weeks. A similar pattern was observed in January 2024 when a sharp decline in funding rates calmed the futures market, setting the stage for Ethereum's next major impulsive rally. This historical precedent suggests that the current market reset could mark the beginning of another bullish phase.

Ethereum is at a critical juncture. Despite recent declines, markets are showing signs of recovery and consolidation. Support in the $3.2K–$3K zone might be a starting point for a potential return to the $4K level in the coming weeks.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Metaplanet's Strategy of Utilizing Bitcoin for Acquisitions

chest

Metaplanet is accumulating Bitcoin for strategic acquisitions, including plans for a potential digital bank in Japan.

user avatarGiorgi Kostiuk

KuCoin's Approach to Compliance Under BC Wong: Challenges and Prospects

chest

BC Wong, CEO of KuCoin, discussed the importance of compliance and the future of stablecoins amidst criticism from ZachXBT.

user avatarGiorgi Kostiuk

XRP: Key Indicators Amid Potential Upsurge

chest

XRP is at a critical stage with a symmetrical triangle signaling potential price movement. Analysis of the current situation by Steph Is Crypto.

user avatarGiorgi Kostiuk

OT MANAGEMENT Introduces a Retail Investor-Centric Model

chest

OT MANAGEMENT, LLC develops a strategy focused on retail investors under the leadership of Daniel John Impens.

user avatarGiorgi Kostiuk

Pi Network: Prospects Amid Overall Cryptocurrency Market Growth

chest

Despite the overall recovery of the cryptocurrency market, Pi Network continues to face challenges. An overview of the technical situation and possible scenarios.

user avatarGiorgi Kostiuk

Bit Digital: A Complete Shift from Bitcoin to Ethereum

chest

Bit Digital has sold all its Bitcoin and invested $200 million into Ethereum.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.