Ethereum Price Drop: $4,000 Support Faces Critical Test
Ethereum Price at a Crossroads: Will $4,000 Hold?
Ethereum's Ether (ETH) token has experienced a significant price drop this week, declining over 7.5% amidst a broader crypto market downturn. Technical analysis suggests this decline could lead to further downside if critical support levels fail to hold.
Key Support Levels Under Pressure
- Symmetrical Triangle Breakdown: ETH has broken below its symmetrical triangle pattern, signaling a potential 15% correction.
- Target Price: The breakdown suggests a possible decline to $3,560 if selling pressure continues.
- Ascending Trendline: Bulls must defend the ascending trendline, which has supported previous rallies, to avoid a more significant drop.
Analyst's Perspective: $3,550 - $3,750 Range in Focus
Analyst Michaël van de Poppe highlights a potential support range between $3,550 and $3,750, coinciding with the 20-week exponential moving average (EMA) at around $3,685.
Poppe suggests that the current price level could be an opportune moment for initial accumulation, noting that "Compression is building up -> Big move to occur at a later time,"
“It’s now down nearly 20% from the high, not a bad spot to be accumulating your first positions.”
Potential for Rebound: $4,250 as Key Resistance
Despite the bearish signals, ETH is currently testing a rising trendline that has historically preceded substantial rallies. A bounce from this trendline, followed by a decisive close above the 50-day EMA near $4,250, could trigger a recovery towards the $4,600-$4,700 range.
Bullish Scenario: $7,000 Target in Sight?
Crypto GEMs suggests that a bounce from the ascending trendline support could propel Ether to a new all-time high of $7,000, based on the Wyckoff Accumulation method. This model suggests that ETH has completed its "spring" and "test" phases, indicating the start of a sustained upward trend.
In this framework, the recent decline represents the "Last Point of Support" (LPS), potentially setting the stage for a significant rally. If validated, this setup could result in at least 65% gains by the end of 2025.