Ethereum Price Struggles to Break $4K: Will the Bulls Reclaim Control?

Ethereum's price has faced a significant correction after briefly surpassing the $4,000 mark, with the cryptocurrency now struggling to maintain upward momentum. Despite testing the $4,080 resistance zone, ETH has since fallen below $4,000, showing signs of bearish pressure. The key question remains: will Ethereum bulls return to push the price higher, or will the bears take control?

Ethereum's Recent Price Action

After reaching a high of $4,093, Ethereum's price began to show signs of weakness. The upward rally, which had seen ETH surge from the $3,750 support level, was halted as the price slipped below critical support levels, including the $4,000 zone.

The price is currently trading above the $3,920 level, holding steady near the 100-hourly Simple Moving Average. However, a key bearish development occurred when Ethereum's price broke below a bullish trend line, with support at $3,965, signaling potential further downside.

Key Support and Resistance Levels to Watch

The immediate upside for Ethereum seems limited, with resistance forming near the $3,960 and $3,980 levels. A clear move above $4,000 could reignite bullish momentum, potentially sending ETH towards the $4,080 resistance zone. If the price can break past this level, the next major resistance lies near $4,150, and possibly as high as $4,220.

On the downside, Ethereum is showing some weakness. The first line of defense for the bulls is the $3,920 support level, followed by stronger support near $3,880. If Ethereum fails to hold above these levels, it could see further declines, with potential targets at $3,840 and $3,770. In a worst-case scenario, the price might even test the $3,650 support.

Technical Indicators Signal Caution

Several technical indicators point to a loss of momentum for Ethereum's bullish trend. The MACD for ETH/USD is losing steam, showing diminishing bullish momentum, while the Relative Strength Index (RSI) has dropped below the 50 mark, signaling growing bearish pressure.

What’s Next for Ethereum?

Ethereum’s price action is at a critical juncture. A successful rally past the $4,000 resistance could pave the way for further gains, while failure to clear this level could lead to deeper declines. Traders will need to watch key support zones closely, particularly the $3,920 and $3,880 levels, to gauge the next potential move for Ethereum. As always, market sentiment and broader conditions will play a crucial role in determining whether the bulls or bears dominate in the short term.

In conclusion, while Ethereum has shown resilience above the $3,750 support, the path ahead remains uncertain. The next few days could be crucial in determining whether Ethereum’s price can reclaim the $4,000 threshold or face a more prolonged correction.