Ethereum fell under the $4,000 mark on Friday, extending its decline as broader market sentiment weakened across major cryptocurrencies.
The second-largest digital asset traded around $3,959, down nearly 9% in the past 24 hours and over 12% for the week, according to market data.
Bitcoin also remained under pressure, hovering near $116,000 after sliding over 4% in the past day. XRP, meanwhile, was among the hardest-hit large-cap coins, dropping below $2.70 after a weekly loss exceeding 12%.
Technical Indicators Signal Caution
Ethereum’s latest technical readings indicate growing bearish momentum. The daily chart shows the Relative Strength Index (RSI) hovering around 51, suggesting fading buying strength. Meanwhile, the MACD indicator has turned negative again, hinting that downward momentum could persist in the short term.
On TradingView’s daily technical analysis summary, Ethereum currently holds a “Sell” signal overall. Out of 26 major indicators, 15 point to a sell, 9 remain neutral, and only 2 suggest a buy. Moving averages show an even stronger bearish tone, with 12 indicators marking a “Strong Sell.”
Market Context and Outlook
The recent correction comes amid heightened volatility across both crypto and traditional markets. Investors are weighing the impact of U.S. President Donald Trump’s renewed tariff threats toward China, which triggered broad risk-off sentiment in global equities and digital assets alike.
Ethereum’s latest price action follows a brief attempt to stabilize above $4,200 earlier this week, but the coin failed to hold that level as sellers regained control. Traders are now eyeing the $3,800 region as a key support zone, with a potential recovery only likely if ETH can reclaim the $4,100–$4,200 range.
For Bitcoin, the $115,000–$117,000 corridor remains crucial as it attempts to avoid further downside pressure. XRP, struggling below $2.70, risks deeper losses if sentiment fails to improve.
As markets digest recent macro headlines, analysts expect volatility to remain elevated through the weekend, with Ethereum’s technical setup suggesting the potential for another test of lower support before any sustained rebound.
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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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