Ethereum (ETH) has broken below the key $4,000 threshold, signaling that the recent bullish momentum may be stalling. After reaching highs near $4,250, ETH slipped under $4,000 and is currently trading around $3,920.
Analysts highlight that the breakdown comes amid a combination of structural and macro headwinds. The important support zone between $4,000 and $3,920 is now in focus. A failure to reclaim it could expose ETH to further downside, with near-term targets spotted at $3,700 or even $3,600.
Key Factors Weighing on Ethereum
- •A loss of investor confidence as ETH’s long-term trend weakens.
- •Large liquidation events and elevated open interest in derivatives.
- •Macro pressures such as a stronger U.S. dollar and rising bond yields.
On the flip side, the market is closely watching for any sign of rebound strength. If Ethereum can recapture $4,000 and build support above that level, it may stabilize and re-target the $4,250 to $4,300 range. Until then, the bias remains cautious.