Ethereum Price At Risk Of Crash To $4,000, Is A New ATH Still Possible?
Ethereum teeters on the edge—$4,000 looms as critical support while traders hold their breath for another shot at all-time highs.
Market Mechanics Exposed
Liquidity drains from key levels as leveraged positions face margin calls. The $4,000 zone isn't just psychological—it's where institutional buy orders supposedly cluster. Break that, and automated systems trigger sell cascades even traditional finance would find impressively inefficient.
Bull Case Intact
Network upgrades continue delivering real utility while speculators chase the next narrative. Previous cycles show Ethereum thrives on volatility—sharp corrections often precede explosive breakouts. The fundamental thesis remains unchanged despite short-term price action.
Wall Street's crypto tourists still treat $4,000 like some mystical threshold—as if round numbers matter more than actual adoption metrics. Meanwhile, developers keep building while the suits panic over charts.
Will it crash or surge? Markets don't care about your predictions—they'll do whatever hurts the most positions simultaneously. That's not finance; that's algorithmic performance art.
At this point, it is now simply a matter of what level the Ethereum price retests, and what it successfully breaks through. From here, holding the demand above $4,300 is important if the bulls want to continue the rally. If they are successful, then the analyst does see the Ethereum price making its way back to $4,600-$4,800.
However, on the flip side of this is the bears taking over and forcing a retest of the demand level. This WOULD happen if bulls were unable to sustain the current demand, leading to a breakdown in the price. From here, the next major level would be the support at $4,000, pushing the Ethereum price toward the next major psychological level.
What this trend shows is that while the market is leaning bullish, the bulls still have a relatively weak hold, meaning it could go sideways at any point. “The structure suggests a potential bullish reversal, but confirmation is required with a break of the bearish trendline and demand reaction,” the crypto analyst said.
