Bitcoin and Ethereum face sharp drops as traders worry about market corrections despite overall bullish support zones holding steady.
Ethereum is testing the $4,200 buy zone with SuperTrend support showing bullish signs but rising selling pressure creates uncertainty.
A wedge pattern signals Ethereum could swing between $4,000 and $4,400 with traders watching closely for breakouts or breakdowns.
Following the market's peak of $4.2 trillion this month, Bitcoin and other significant cryptocurrencies like Ethereum and XRP are seeing steep drops. Bitcoin has dropped 10% to $114,000 after recently reaching an all-time high of $124,000.
Ethereum and Ripple’s XRP are showing similar pullbacks despite President Donald Trump’s unexpected $12.2 trillion crypto policy announcement. The sudden downturn has rattled investors, raising fresh concerns of a broader crypto market correction.
Ethereum Tests SuperTrend Buy Zone
As of writing, Ethereum price stands at $4,215.82 with a massive 24-hour trading volume of $49.6 billion. The token is down 0.52% in the past day, reflecting broader weakness. However, analysts note that Ethereum remains in a bullish structure supported by the SuperTrend indicator.
IncomeSharks highlighted that Ethereum’s SuperTrend has consistently provided strong buy zones during uptrends. Besides, the latest chart data shows Ethereum hitting a recent high of $4,353 before dropping 4.07% to $4,136.
Source: IncomeSharks
There are two key buy zones in the analysis, one around $3,400 and another around $4,200. As for recently, Ethereum is retesting the $4,200 support level, which may be a key point of entry for traders.
Furthermore, if the $4,200 level holds, the SuperTrend line, which is still below the price, indicates that bullish momentum can restart. Red candles, however, suggest growing selling pressure, which is a warning indicator.
Wedge Pattern Creates Market Uncertainty
Technical analyst Ted provided further insight, noting Ethereum’s formation of a descending wedge on the 4-hour timeframe. The price stalled below $4,400 and then tried to recover this wedge. But around $4,100 and $4,000, momentum slowed, leaving Ethereum vulnerable to potential losses.
Source: Ted
Furthermore, resistance levels at $4,300 and $4,400 show consolidation periods which have not changed since the collapse. Therefore, Ethereum maintains support at $4,100 or declines toward $4,000 impacts short-term trajectory.
Although still positive, Ethereum's trend is brittle. Increasing volatility is highlighted by the latest downturn. Furthermore, market sentiment could change rapidly if important support zones are under strain.
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