Ethereum Stalls Below $4,060: Bull Trap or Breakdown to $3,600?

Ethereum hits a critical resistance wall—traders brace for volatility.

Technical Tug-of-War

The $4,060 level morphs into Ethereum's battleground. Bulls push for breakout momentum while bears dig in for a rejection. Every failed test weakens the upward thesis.

Support Levels in Play

A breakdown below current consolidation targets the $3,600 zone. That price point represents both psychological support and a key technical floor from previous cycles. Market makers watch order book density like hawks.

Liquidity Games

Whales play both sides—fakeouts crush overleveraged retail positions. The classic 'liquidity grab' before major moves creates whipsaw action that would make traditional finance veterans blush. Meanwhile, Wall Street still thinks blockchain is just for monkey pictures.

Next Move Critical

Ethereum either confirms strength with a decisive close above resistance or faces accelerated selling pressure. The charts don't lie—but they do torture impatient traders.

Struggling Below $4,060: Key Support Yet To Be Reclaimed

Ted, a well-followed crypto analyst, recently shared his insights on Ethereum’s latest price action in a post on X. According to the expert, ETH successfully tapped into the $3,800 liquidity level, a move he had anticipated. This level acted as a key zone where buyers stepped in, providing the much-needed bounce for ethereum after a short-term decline.

Following this bounce, Ethereum managed to recover some ground. However, Ted pointed out that the asset is still struggling to reclaim the $4,060 support region. This level has now become a crucial barrier for ETH, and its inability to hold above it leaves the market in a vulnerable position.

The analyst explained that if Ethereum successfully flips the $4,060 level back into support, the market could see a fresh rally develop. Such a move attracts renewed bullish momentum, fueling Optimism for a stronger push higher in the near term.

On the other hand, Ted cautioned that failing to reclaim this zone increases the risk of further downside. In such a case, Ethereum could see its price tumble back toward the $3,600 level, which stands as the next critical support area. 

Fakeout Or Freefall? Ethereum Bulls Cling To Their Last Hope

According to Andrew Crypto, in a recent update posted on X, the technical outlook across the crypto market isn’t painting a bullish picture. Andrew highlighted that both BTC and ETH have broken down through key support levels, which increases the likelihood of further declines in the short term. Such breakdowns often suggest that buyers are losing strength, leaving room for sellers to dictate market direction.

While acknowledging that the current setup may not be pleasant for traders, Andrew pointed out that this weakness could present a significant opportunity for long-term investors, offering attractive entry points before the next major market cycle takes shape.

However, he also left room for cautious optimism. The only possible bullish scenario at this stage, Andrew explained, is if the current move proves to be a fakeout. In that case, a strong rebound could follow, flipping market sentiment back in favor of the bulls.