Ethereum price slides under $4K as funding turns negative
Ethereum price has slipped below $4,000, losing the midline of its ascending channel and dipping under the 100‐day moving average near $3,800. The drop also breached the 50% Fibonacci retracement zone at $3,400–$3,500. A brief bounce reached $3,800, but the daily RSI remains below 40, signaling weak momentum.
On the 4-hour chart, ETH found support around $3,400 with an RSI in oversold territory near 24. Resistance at $3,800 holds firm. A clear break above $4,200 is needed to turn Ethereum price momentum bullish; otherwise, ETH faces renewed pressure.
On-chain data show the Exchange Supply Ratio at multi-year lows and funding rates turning negative for the first time since late 2024. This reflects enforced liquidations and trader fear. Historically, such deep pullbacks can clear excess leverage and lead to short-term recoveries once selling subsides.
Failure to reclaim key support at $4,000 risks a deeper slide toward $3,000, potentially threatening the broader bull market. Traders should watch volume, funding rates and RSI signals for potential reversal or accelerating breakdown.
Bearish
The news highlights persistent downside pressure on Ethereum price after breaching critical support at $4,000. Technical indicators—daily RSI below 40, on-chain supply ratio at multi-year lows and funding rates turning negative—signal ongoing bearish momentum. The risk of a deeper slide toward $3,000 outweighs short-term rebound potential. Although historical negative funding spells can precede relief rallies, the lack of bullish confirmation above $4,200 suggests the dominant trend remains bearish for both short-term trading and market stability.