Ethereum is experiencing volatility as it struggles to stay above the critical $4K mark, sparking fears of seller dominance and further price declines.
Technical Analysis
Technical indicators show significant pressure on Ethereum, especially after its failure to cross the $4K level. Monitoring key support levels is crucial to prevent further declines.
The Daily Chart
The daily chart shows that after the attempt to rally towards $4K, Ethereum faced strong resistance between $3.7K-$3.8K. A drop below $3.3K might bolster bearish momentum, with the $3K area being a critical support zone for buyers.
The 4-Hour Chart
On the 4-hour chart, a three-drive pattern formed near $4K, accompanied by bearish divergence on the RSI indicator. The price breached the crucial $3.5K support and is approaching the major support area near $3K. Failing to hold this level could lead to more declines.
Ethereum must hold above the $3K support to avoid intensified selling pressure and prolonged corrections. This level remains pivotal for the cryptocurrency's future market movements.
