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Ethereum Price at Risk of Falling to $4,000: Is a New ATH Still Possible?

Ethereum faces a risk of falling to $4,000, with future trends dependent on market dynamics.

Amid the continuous fluctuations in the crypto market, Ethereum is currently facing significant challenges. The ongoing tug-of-war between bulls and bears is crucial for determining the future direction of this digital asset. Here are some key levels that could impact Ethereum's next moves.

Key Points

  • Ethereum has fallen below $4,300 and is approaching a critical demand zone.
  • The current trading range is between $4,200 and $4,300, facing upward resistance.
  • The bullish trendline supports recent rallies, but the bearish trendline limits upward momentum.
  • If the price cannot maintain above $4,300, a retest of the $4,000 support level may occur.
  • Market sentiment leans bullish, but the bulls' control remains weak.

In-Depth Analysis

The recent volatility in Ethereum's price has drawn widespread attention from market participants. According to analyst ProfitMagnet, the current price has retreated to a key demand zone, making the next few days critical for price direction. Ethereum experienced strong resistance between $4,600 and $4,800 over the past month, and is now consolidating in the $4,200 to $4,300 range. If the price can effectively break through this area, the likelihood of rising toward $4,600 to $4,800 will significantly increase.

However, it is important to note that despite the overall bullish market sentiment, bearish pressures still exist. Analysts point out that while the recent rebound is supported by a bullish trendline since August, the presence of a bearish trendline continues to suppress upward momentum. Future movements will depend on whether the price can retest and break through critical resistance levels.


Market Impact

The fluctuations in Ethereum's price not only affect its market performance but also create a ripple effect throughout the entire crypto market. A drop below $4,300 followed by a retest of $4,000 could trigger broader selling sentiment, affecting the prices of other digital assets. As such, investors should remain vigilant and monitor market developments.

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Conclusion

The future direction of Ethereum's price hinges on the supply-demand dynamics in the market. While there are short-term risks of retracement, a breakthrough by the bulls could lead to new upward opportunities. Stay alert and seize the moment.