Ethereum Hits Critical Resistance Wall - Is Another Market Plunge Imminent?

Ethereum slams into a massive resistance barrier that could determine its next major move.

The Technical Standoff

Ethereum faces what traders call a 'make-or-break' moment at current levels. The resistance wall represents a concentration of sell orders that previously halted upward momentum. Market participants watch closely as each rejection weakens bullish conviction.

Trading Psychology at Play

Fear creeps back into the market as repeated tests of resistance fail to produce breakthroughs. The pattern mirrors previous setups that preceded significant corrections. Traders grow increasingly nervous about potential downside targets.

Institutional Positioning Shifts

Large wallets show subtle redistribution patterns suggesting smart money prepares for volatility. The options market flashes warning signals with put volumes spiking at key strike prices. Everyone positions for what comes next—except the financial advisors still recommending bonds.

Ethereum now dances on the edge—will it break through or break down? The next 48 hours could define market direction for weeks to come.

Ethereum Price Is Now At Risk

Ethereum price failed to continue higher above the $4,500 zone and started a fresh decline, like Bitcoin. ETH price declined below the $4,420 and $4,350 support levels.

The bears even pushed the price below $4,200. A low was formed at $4,000 and the price recently started a minor recovery wave. There was a MOVE above the 23.6% Fib retracement level of the downward wave from the $4,636 swing high to the $4,000 low.

Ethereum price is now trading below $4,220 and the 100-hourly Simple Moving Average. On the upside, the price could face resistance NEAR the $4,220 level. The next key resistance is near the $4,280 level.

The first major resistance is near the $4,315 level and the 50% Fib retracement level of the downward wave from the $4,636 swing high to the $4,000 low. A clear move above the $4,315 resistance might send the price toward the $4,370 resistance. There is also a key bearish trend line forming with resistance at $4,370 on the hourly chart of ETH/USD.

An upside break above the $4,370 region might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,450 resistance zone or even $4,550 in the near term.

Another Decline In ETH?

If ethereum fails to clear the $4,215 resistance, it could start a fresh decline. Initial support on the downside is near the $4,125 level. The first major support sits near the $4,050 zone.

A clear move below the $4,050 support might push the price toward the $4,000 support. Any more losses might send the price toward the $3,880 region in the near term. The next key support sits at $3,750.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $4,125

Major Resistance Level – $4,320