Ethereum price struggles as $4K support slips

Ethereum price momentum is showing fresh signs of weakness after the attempt by Ethereum (ETH) to reclaim the US $4,000 mark faltered. What looked like a rebound has stalled, and data now points to a more cautious outlook for the second-largest cryptocurrency.

The chart above from CoinMarketCap shows how the Ethereum price has fluctuated over the past month, reflecting the market’s mixed sentiment. After briefly testing the $4,000 zone, ETH faced consistent resistance and gradually retraced, forming a pattern of lower highs. This visual trend aligns with on-chain data suggesting weakening momentum and increased selling pressure from long-term holders. The current consolidation phase highlights how traders remain cautious while watching for either a confirmed breakout or deeper correction in the weeks ahead.

Why the Ethereum price rally is stalling

ETH’s recent push above the $4,000 threshold captured attention, but the move lacked staying power. According to the source article, Ethereum found resistance near this level and began to drop again as bullish conviction faded. This erosion of strength puts the broader recovery at risk.

One contributing factor is selling pressure from long-term holders. The article reports long-term addresses are offloading ETH in increasing volumes, creating a headwind for price support. As these holders take profits or shift assets, the supply side adds pressure that bulls will need to overcome.

Another warning sign comes from on-chain activity metrics. The article highlights that user activity, network engagement and staking inflows are weakening, all signs that demand dynamics may be cooling. Without fresh participation or accumulation, the infrastructure supporting the price rally looks less robust.

So while there was hope for a strong rebound, the inability of Ethereum to hold above $4,000 and the emerging data suggest the recovery may be in doubt.

Key levels and what they mean for Ethereum price

Support and resistance zones
In practical chart terms, the article points out that $4,000 was a pivotal support turned resistance zone for ETH. Failing to sustain above it means the bulls must now defend lower levels or face further downside. A breach below these levels could expose ETH to broader losses.

On the downside, the next critical support sits in the range of roughly $3,800–$3,900. If that zone fails, the article suggests the risk of deeper correction increases. As for resistance, the inability to break convincingly above $4,000 signals the path upward is still blocked and may require stronger catalysts to re-ignite.

Technical pressure building
The article details that momentum indicators are turning bearish. For example, MACD signals and RSI trends are aligned in showing decreasing momentum and increasing risk of further decline. When price attempts lose steam and indicator readings soften, the odds of a sustained reversal go down.

Long-term holders selling, combined with reduced network activity, further strengthens the bearish case. According to the article, the long/short difference metrics show elevated potential for near-term sell pressure. All these signals raise an alarm: the recovery may be faltering, and the trend could shift toward downside risk.

What this means for the recovery of Ethereum price

The stalled rebound brings three clear implications:

1. Reduced upside potential in the near term
   With ETH unable to reclaim $4,000, the upside path may be muted until a clearer breakout occurs. Bulls may need to wait for stronger on-chain demand or favorable macro triggers to regain traction.
2. Risk of increased downside pressure
   The weakening support levels and bearish indicators raise the risk of a correction. If ETH breaks the support near $3,800-$3,900, the article suggests deeper pullbacks are a tangible possibility.
3. Dependence on fundamental and sentiment catalysts
   Recovery scenarios now rest more heavily on external catalysts, for instance, renewed staking flows, increased DeFi usage, or institutional interest. Without these, the technical and on-chain setup remains tilted in favour of caution.

In essence, the recovery thesis for Ethereum price is still alive but looks increasingly fragile. Without strengthening demand signals and renewed buying momentum, the risk profile is skewed toward downside rather than an immediate breakout.

What to watch next for the Ethereum price outlook

Staking and network dynamics
Keep an eye on staking inflows and network engagement. A revival in staking activity or a surge in daily address usage could signal renewed interest in Ethereum’s ecosystem. The article indicates these metrics have cooled, so a reversal could act as a bullish trigger.

Long-term holder behavior
Monitoring the behaviour of long-term holders is key. If large holders stop selling or begin accumulating again, it could signal a shift in sentiment. Conversely, continued offloading will likely add pressure on the Ethereum price.

Macro and market sentiment
Broader crypto market sentiment, including activity around institutional flows, regulatory developments and macroeconomic factors, will influence ETH’s recovery prospects. If sentiment turns negative or Bitcoin and other major assets weaken, Ethereum will likely feel the impact.

Technical breakout or breakdown
From a chart standpoint, a convincing breakout above $4,000 (and clear closing above that level) would be required to confirm recovery. Alternatively, a breakdown below key support (near $3,800) could trigger a more meaningful correction as indicated by the article.

Conclusion

The Ethereum price rebound has encountered a significant roadblock. While the attempt to climb back above $4,000 showed initial promise, the rally lacked conviction and now appears shaky. On-chain data, holder behaviour and technical indicators all warn of a potential shift in momentum.

For now, the recovery thesis remains uncertain. Ethereum can still turn higher, but it needs renewed demand and clearer bullish signals to do so. Without those, caution is warranted. Stakeholders should watch key levels, monitor underlying network dynamics and stay alert for signs that either confirm a renewal of strength or a transition toward further decline.

In short: the Ethereum price story is still unfolding, but the recent inability to hold $4K raises important questions about the sustainability of the rebound. Whether the bulls regain control or the bears gain the upper hand will depend heavily on what happens next across on-chain and market indicators.

Keep yourself updated with the latest crypto news with FYI Gazette