Ethereum Price Correction: Can ETH Hold the $4,020 Support or Face More Losses?

Ethereum is once again under pressure as the crypto market experiences heightened volatility. The Ethereum price correction has gained momentum after ETH failed to sustain above the $4,350 level.

Currently, Ethereum is trading below both the $4,350 resistance and the 100-hourly Simple Moving Average, signaling a possible continuation of the ETH bearish trend.

On the technical side, there is a clear bearish trend line forming near the Ethereum resistance $4,350, which has capped any short-term recovery attempts. If bulls fail to reclaim this level, ETH could be vulnerable to further declines in the near term.

Source: Bitrue Platform

Ethereum Technical Analysis: Key Levels to Watch

Source: TradingView

1. Immediate Resistance: $4,185

2. Major Resistance: $4,350 (bearish trend line and Fib retracement barrier)

3. Immediate Support: $4,065

4. Major Support: ETH support $4,020

5. Extended Support: $3,850-$3,620

Ethereum recently tested the $4,065 zone after losing ground from the $4,580 swing high. While the coin is attempting to consolidate, momentum indicators like the RSI and MACD remain bearish.

This suggests that unless ETH breaks above the $4,350 resistance, sellers may continue to dominate.

Read Also: Ethereum Price Prediction: Will ETH Smash $5K After Bullish Rebound?

What’s Driving the Bearish Trend?

Several factors are contributing to the recent Ethereum price correction:

1. Profit-taking: Many traders are locking in gains after ETH reached a yearly high at $4,788.

2. Market-wide weakness: Bitcoin and altcoins are showing similar pullbacks, adding pressure on ETH.

3. Institutional caution: While retail investors are selling, Ethereum whales with more than 10,000 ETH are quietly accumulating, signaling confidence in long-term prospects.

This divergence between short-term bearish price action and long-term accumulation highlights that while volatility remains, strong hands may be preparing for the next upward move.

Read Also: Ethereum Price Prediction: Can ETH Rebound Toward $4,500 or Face a Deeper Correction?

Can Ethereum Hold the $4,020 Support?

If ETH fails to hold above the $4,020 support, the price could extend its decline toward $4,000 or even $3,850. A sharper drop could open the path toward $3,620.

On the flip side, a decisive breakout above the Ethereum resistance $4,350 would invalidate the bearish outlook and potentially push ETH back toward $4,500 or even $4,550.

The coming days will be crucial in determining whether Ethereum stabilizes at key support or extends its bearish trajectory.

Stay ahead of every Ethereum price analysis and market update, follow the latest insights on the Bitrue Blog to never miss an opportunity in crypto.

FAQ

What is causing the current Ethereum price correction?

Ethereum is facing a pullback due to profit-taking, broader market weakness, and technical resistance around $4,350.

What are the key Ethereum support and resistance levels right now?

Ethereum has major support at $4,020 and major resistance at $4,350. A break below support could lead to deeper declines, while a breakout above resistance could spark recovery.

Is Ethereum still in a bearish trend?

Yes. Current technical indicators and trend lines point to an ETH bearish trend, though whale accumulation suggests potential for a long-term bullish setup.

Can Ethereum recover above $4,500 soon?

A recovery above $4,500 is possible only if ETH clears the $4,350 resistance and gains momentum from broader market strength.

How does whale accumulation impact Ethereum’s future price?

Whale accumulation signals strong long-term confidence in Ethereum. While short-term price action may remain bearish, aggressive whale buying often precedes major rallies.