Ethereum Plunges Below $4K as Bearish Signals Flash Red - What’s Next for ETH?

Ethereum's crucial $4,000 support level just shattered—sending shockwaves through crypto markets.

The Breakdown

ETH couldn't hold the line at $4K despite multiple defense attempts. Technical indicators turned bearish hours before the collapse, catching many traders off guard.

Market Reaction

Liquidations piled up as stop-losses triggered across major exchanges. The drop below psychological support has analysts scrambling to reassess their bullish ETH forecasts.

Silver Linings?

Some see this as a healthy correction—another buying opportunity in crypto's endless cycle of euphoria and panic. Because nothing says 'sound investment' like 20% daily swings.

Where Ethereum goes from here depends on whether bulls can regroup or if bears have truly taken control.

Crypto Trader Koala noted on X, “The last three times this cross turned red, ETH dropped hard. Not liking what I see here.”

$ETH

This is a weekly breakdown and trend loss.

This is not bullish chop (that is cope from the bulls)

We will likely see downward acceleration sooner than later.

Weekly range low deviation?

Maybe.

But I wouldn't bet on that. pic.twitter.com/4Fq2OsOO7j

Titan of crypto added that traders should be “prepared for any scenario” as the signal becomes confirmed, while others, like Man of Bitcoin, maintained that ETH could recover if the $3,899 support holds. If it breaks, they warn of a deeper correction mirroring prior cycles.

$ETH: As long as the price holds above the $3,899 support level, a direct move to the upside in wave-3 remains possible. A break below this level WOULD suggest that a larger ABC correction in wave-2 is unfolding. pic.twitter.com/fAbFR20JHi

Bulls eye key support at $4,000 besides drop

Ethereum currently trades NEAR $3,900, hovering just above a critical $4,000 support level, the same zone that preceded its sharp 2022 collapse from $4,000 to $880. The level has once again become a key battleground after this week’s $115 million in long liquidations pushed ETH below $4,000. 

While the drop triggered renewed caution among traders, analysts argue that holding above $3,800 could still preserve Ethereum’s broader uptrend and set the stage for another push toward new highs.

The market’s current uncertainty underscores Ethereum’s delicate balance between bullish momentum and technical weakness. 

As futures leverage builds and macro volatility rises, traders remain split between viewing this correction as a healthy reset or the start of a larger downturn.

Also read: ethereum Leads 2025 Developer Growth With Over 16K New Builders