Ethereum Plunges - $4,000 Becomes Critical Battle Line Between Bulls and Bears

Ethereum's price just took a brutal hit, leaving traders scrambling as the $4,000 level transforms into the ultimate psychological battleground.

The Tipping Point

That $4,000 mark isn't just another number on the chart—it's become the definitive line in the sand. Bulls see it as the last stand for maintaining any semblance of upward momentum, while bears smell blood and circle for another push downward.

Market forces clash with brutal efficiency at this precise valuation threshold. Break below it, and the floodgates could open for a much deeper correction. Hold above, and the optimists might just muster enough strength for a counteroffensive.

Traders now face a simple binary choice: back the rebound or bet on the breakdown. The entire market holds its breath watching this high-stakes showdown unfold—proving once again that in crypto, fortunes can flip faster than a trader can say 'risk management.'

Ethereum Price Dips Sharply

Ethereum price failed to continue higher above the $4,550 zone and started a fresh decline, like Bitcoin. ETH price declined below the $4,450 and $4,350 support levels.

The bears even pushed the price below $4,120. A low was formed at $4,000 and the price is now consolidating losses. There was a minor recovery wave 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 $4,300 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 $4,250 level.

The first major resistance is near the $4,320 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 $4,320 resistance might send the price toward the $4,360 resistance. There is also a key bearish trend line forming with resistance at $4,360 on the hourly chart of ETH/USD.

An upside break above the $4,360 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 $4,220 resistance, it could start a fresh decline. Initial support on the downside is near the $4,120 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 – $4,120

Major Resistance Level – $4,360