Ethereum at the $4,000 Resistance Zone
Ethereum is currently testing and often failing to clear the critical $4,000 resistance, a barrier that has repeatedly capped upside momentum. Analysts suggest this price level is actively defended—likely by hedge funds and option sellers—resulting in repeated rejections and sharp pullbacks.
Recent reports note that ETH has now faced four consecutive rejections near $4,000, with price struggling to maintain upward pressure. Technical indicators like MACD are signaling bearish momentum, though there’s still ongoing buying interest.
From a structural standpoint, a weekly close above $4,000 would signal a confirmed breakout and could open the path toward higher targets, such as the mid-$4,000s or even its prior all-time high. If the breakout fails, however, a pullback toward key support levels—potentially around $2,500—remains possible.
Adding to the bullish case are strong tailwinds—from regulatory clarity and ETF inflows to Ethereum’s central role in DeFi, stablecoins, and tokenization—which all support underlying strength.
Short-Term Trading Strategy: Entries & Stop-Losses
• If trading a breakout:
• Enter on a decisive daily or weekly close above $4,000 with increased volume.
• Place a tight stop-loss near $3,900–$3,950 to limit downside risk.
• Target levels: $4,200–$4,500, with a stretch goal at prior ATH around $4,865.
• If playing potential rejection:
• Look to short at or near $4,000, especially if MACD or RSI show overbought conditions.
• Set a stop-loss just above the high of the recent test—around $4,050.
• Manage your risk carefully—ETH has shown sharp bounces after rejections in prior cycles.
⸻
Long-Term Investment Outlook
• Breakout Scenario → If ETH sustains above $4,000, it signals broader bullish thrust: prepare for a potential climb toward $5,000–$6,000 and possibly a revisit of its ATH. Institutional momentum and growing demand provide strong fuel.
Dyor keep following @Aman Sai 🚀
