Despite the successful implementation of Ethereum‘s (ETH) latest upgrade last week, the ETH price witnessed a strong selling pressure with a correction of over 10%, failing to hold the $4,000 resistance level. While Bitcoin experienced some recovery over the weekend, ETH continued to be under the control of bears.
Ethereum’s Struggle with the $4,000 Target
Ethereum price has seen a significant drop of over 10% from its recent high of $4,000. Despite this decline, a significant portion of ETH holders, who make up 89% of the network, are still in profit, which could underscore resilience amid market volatility. Important on-chain data from IntoTheBlock reveals potential support levels for ETH’s price trajectory. Notably, the largest concentration of on-chain selling volume is observed around $3,700, where approximately 991,000 addresses collectively purchased 4.35 million ETH.
This situation could indicate that market dynamics are ready to revolve around this critical level, presenting a challenging barrier to further price gains. Investors are closely monitoring ETH’s price movements, focusing on key support and resistance levels, with the $4,000 range emerging as a significant psychological criterion. Ethereum’s price trajectory could indicate that it is currently trading below $3,700 and the 100-hour simple moving average (SMA).
Potential Upswing Scenario for ETH
Experts suggest that near-term resistance appears close to the $3,650 level, with a significant downtrend line forming. Additionally, the ETH/USD hourly chart could face a hurdle at $3,660. Analysts then identified significant resistance barriers near the $3,750 level, which could represent the 50% Fibonacci retracement level of the recent drop from $4,084 to $3,414. The next major resistance lies at $3,830, and breaking it could potentially catalyze an upswing momentum.
In an upswing scenario, the cryptocurrency could see a rise towards the $3,925 level. Further gains could lead to testing the critical $4,000 resistance, with potential for more gains towards $4,080. Conversely, failing to surpass the $3,650 resistance could trigger a new decline. The initial support is expected around $3,520, followed by a more significant support zone around $3,500. If selling pressure intensifies, Ethereum could target the $3,420 support zone and potentially extend losses towards the $3,350 and $3,250 levels.
