Ethereum at a Crossroads: Can $4,164 Support Hold Against Trend Reversal?
Ethereum's bull run faces its first real test—a razor-thin support level at $4,164 that could make or break the rally.
The Line in the Sand
Traders are glued to charts as ETH flirts with a critical threshold. Lose this level, and the 'up only' narrative starts cracking like a DeFi protocol with unaudited code.
Market Mechanics at Play
Liquidity pools below $4,100 are looking thirsty—but then again, so were the 'stablecoin yields' promised by that now-defunct CeFi platform last year.
What's Next?
Either Ethereum bounces hard here, proving its institutional darling status... or we get another masterclass in how crypto 'support levels' often function as polite suggestions.
- Ethereum surges 9.17%, pushing its price near all-time highs, with Standard Chartered targeting $7,000 by year-end.
- Analysts warn about a possible change in trend, with crucial support levels at $4,164 and $3,892.
- Ethereum’s trading volume drops 31.56%, signaling investor caution despite the rally.
Ethereum (ETH) has experienced a sharp increase of almost 9.17% within the last week. This boom moves ETH near to all-time highest (ATH) values. There is a growing optimism among analysts regarding the asset, which prompted Standard Chartered to revise its year-end ethereum price target all the way up to $7,500.
This increase has re-established faith in institutional investors. The recent performance of Ethereum has notably renewed interest as it approaches all-time high (ATH) levels. This growth has attracted the attention of the other large financial players in the cryptocurrency market, with Standard Chartered now predicting the cryptocurrency will hit the mark of 7,000 dollars by December 2025.
Ethereum Faces Correction Risk
Nevertheless, the bullish rally has not convinced all analysts that ETH will continue to rise in the near future. crypto Patel cautioned that ETH has just breached a rising trendline, which could be interpreted as a shift in trend. According to the analyst, ETH confirmed this break in the bearish retest of the market, signaling that the market may be experiencing some correction.
Source: X
Patel identified some important support levels of Ethereum. The initial liquidity pool is at the amount of $4,164, whereas the second and more important level of demand happens to be at the amount of approx. $3,892. Breaking above such levels will continue to see ETH stay bullish. Yet, the bear pressure may continue in case the price stays under $4,600.
ETH Faces Decline in Market Activity
According to Coinglass, market activity has decreased. The volume of trade in ETH has decreased by 31.56% and stands at $160.50 billion. In the same line, the open interest of ETH has also declined by 2.29%, coming down to $62.50 billion. These numbers show that the trading is starting to decelerate, which may portend a sign of prudence among investors.
Source: Coinglass
The 24-hour data on liquidation gives a better understanding of the relationship in the market. It had a total of $170.68 million in liquidations: $130.76 million in long liquidations and $39.91 million in short liquidations. These figures are indicative of continued uncertainty amid movements of traders in response to downward and upward price conditions.
All these mixed signals notwithstanding, the recent rise in ETH has made most institutional analysts revise their price predictions. The cryptocurrency has preserved itself as one of the most powerful facilities in the digital world. ethereum is increasingly gaining interest among retail and institutional investors due to its price that keeps on rising.
Market activity as ETH approaches the levels of its ATH is something that will be keenly observed by market participants. Upcoming weeks will play a decisive role in telling whether ETH is likely to continue its bullish trend or a correction is impending in the NEAR future. Traders and analysts will further analyze the trends in the market to determine the long-term future of the cryptocurrency.
