The Ethereum (ETH) price almost touched the $4,000 mark, sparking excitement across the crypto market. This milestone raises questions about the sustainability of its rally: is ETH entering a correction phase, or is this merely a healthy pause before further gains? Traders and investors are closely watching market sentiment, on-chain activity, and broader macroeconomic factors to gauge the next move. Understanding whether this surge is temporary or part of a longer-term bull trend is crucial for anyone navigating Ethereum’s volatile landscape.
The second-largest token dropped to an ‘indecision zone,’ as nothing much appears to have changed for Ethereum in the higher time frame. However, considering the current price action, the token has been rejected from the downward resistance line. Additionally, it has also broken the downward support with the fresh support at $4068. Hence, if the price breaks below the level, the ETH price rally could witness a further drop.
After the rebound in June 2025, the Ethereum price has again entered the Gaussian Channel, suggesting a drop in the strength of the bulls. However, the channel still remains bullish, pointing towards a potential bullish rebound after squashing the selling pressure. Meanwhile, the RSI continues to plunge after being held at the average since June. This indicates the bears have gained significant dominance and hence, the price could head towards the next support zone.
Resistance 1: $4271—Reclaiming levels above this zone could strengthen the bulls.
Resistance 2: $4492—Securing this range could lead the ETH price towards new highs
Support 1: $4051—This range was defended earlier, and hence a rebound is expected here
Support 2: $3876—This could be the final barrier above the last line of defence at $3376
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