Ethereum’s latest rally has lost momentum, with the price sliding back to $4,335 after failing to hold above the $4,700 mark.
The drop, amounting to a 4.35% decline in 24 hours, has revived fears that the second-largest cryptocurrency could soon test the critical $4,000 zone.
Technical Picture Turns Cautious
Despite still holding an upward trendline, Ethereum is struggling to maintain buying strength. Indicators suggest that the current correction could deepen before any recovery attempt. Analysts note that $4,800 stands as the immediate resistance, while $4,000 has now emerged as the key battleground for bulls and bears.
The Stochastic RSI has slipped toward weaker levels, signaling reduced momentum. Market watchers warn that unless demand picks up soon, Ethereum could revisit the $4,000 area before mounting a rebound.
Whale Activity Adds to Selling Pressure
Large traders have played a decisive role in the recent downturn. Blockchain data shows one veteran whale closed 66,749 ETH longs worth over $303 million, pocketing nearly $7 million in profit. Another trader sold more than 2,200 ETH valued at $9.5 million, locking in a $4 million gain despite slippage costs.
These moves, coupled with on-chain metrics like Spot Taker CVD pointing to dominant selling activity, suggest that whales are firmly in control of the market’s short-term direction. Retail buyers have so far been unable to offset this wave of exits.
What’s Next for ETH?
If Ethereum manages to defend $4,000, analysts see room for a recovery that could carry prices back toward the $5,000 mark. However, persistent profit-taking and weak spot demand mean that buyers face an uphill battle.
For now, the $4,000 support line stands as the most crucial level to watch. A break below it could shift sentiment decisively bearish, while a bounce could reignite hopes of a fresh leg higher.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
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