Ethereum 4000-4200 Key Battleground for Bull and Bear
The $4000-$4200 range for Ethereum is becoming a critical battleground that will determine the direction of bulls and bears.
From a historical perspective, $4000 has been a psychological threshold that ETH has contested multiple times. After the historical peak of $4877 in 2021, this range has repeatedly become a dividing line for bulls and bears, and after numerous tests in the past year, it has become a key defensive line recognized by the market.
Recent market movements have intensified the importance of this range. On August 14, Ethereum fell sharply from $4780, losing support levels of $4500, $4300, $4200, and $4100 within just a few days, touching a low of $4060, with the fear index soaring by 37% in one day. Technically, the daily chart shows a head-and-shoulders pattern, the moving averages have turned bearish, and the TD sequence has issued a sell signal. If it loses the $4000 support, it may drop to $3860.
However, the bulls are not without opportunities. Previously, ETH rose from $1386 to $4780 over four months, a 200% increase, and when it broke $4100, the RSI indicated there was still room for upward movement. From a funding perspective, spot ETFs saw a net inflow of $461 million in one day, although recent outflows of $200 million have increased volatility.
The competition between bulls and bears is particularly fierce in this range: falling below $4060 would trigger $2.94 billion in long liquidations, potentially leading to a 'death spiral'; if it rebounds and breaks above $4794, $1.467 billion in short liquidations could act as a catalyst for upward movement.
For investors, buying at the bottom in this range requires close attention to capital flow and fundamentals. If institutional capital returns and technological upgrades progress steadily, this range could become the starting point for a rebound; if panic spreads and macro conditions worsen, this could merely be a continuation of the downward trend.
The $4000-$4200 range is both a critical risk point and an opportunity window, with every fluctuation rewriting the script of bulls and bears.
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