Ethereum Price Tests $4,000 Support After Resistance Rejection
Ethereum price dropped sharply after failing to break the $4,783.90 resistance. The altcoin plunged to $4,177 and is now retesting the crucial $4,000 support level and the 21-day SMA. If Ethereum support holds above the 21-day SMA, the uptrend may resume toward $4,800. A breach below this support could push prices down to $3,400. On the 4-hour chart, price bars remain below the moving average lines, indicating a bearish trend. Key resistance levels stand at $4,000 and $4,500, while support lies at $2,000 and $1,500. The current technical indicators point to a bearish signal, with the altcoin rejected at moving averages.
Bearish
Ethereum’s failure to sustain momentum above $4,800 and the subsequent retreat to the 21-day SMA underscores a shift in short-term sentiment. Historically, similar retests of key moving average supports—such as the $3,500 level in May 2025—led to deeper corrections when breached. The current rejection at moving average lines on the 4-hour chart points to increased selling pressure. In the short term, traders may see further declines toward $3,400 if $4,000 support fails. However, maintaining the 21-day SMA could stabilize the market and pave the way for a renewed uptrend. Long-term fundamentals remain intact, but the immediate technical outlook is bearish.