Ethereum Pulls Back After Testing $4,232 Resistance
Ethereum dips after testing $4,232 resistance; a close above this level could spark further gains
FUNDAMENTAL OVERVIEW:
Ethereum (ETH) retreated on Tuesday after failing to sustain momentum above the $4,232 daily resistance, which coincides with the 50-day EMA and the 78.6% Fibonacci retracement level of its April rally.
Over the weekend, ETH found solid demand near $3,953, the 61.8% Fibonacci retracement level drawn from April’s low of $1,385 to the all-time high of $4,956. The rebound lifted Ethereum nearly 13% in two days before fresh selling pressure emerged at the resistance zone.
As of Wednesday, ETH trades near $4,011. A continued pullback could bring the price back toward $3,953. Conversely, a decisive break above $4,232 would strengthen bullish momentum and open the path toward the next resistance around $4,488.
ETHEREUM TECHNICAL ANALYSIS CHART:
Technical Overview:
- Ethereum trades inside a downward channel.
- ETH remains below all major Simple Moving Averages (SMA).
- RSI is holding in the bullish zone, while the Stochastic oscillator signals a neutral bias.
| Key Levels | Observation |
|---|---|
| Immediate Resistance | 4,266.1 |
| Immediate Support | 3,796.6 |
Technical Outlook:
Ethereum’s repeated rejections at higher levels highlight strong overhead supply. While support near $3,953–$3,796 remains critical, a break below this zone could trigger deeper losses. On the flip side, a sustained close above $4,232 would shift momentum back in favor of buyers, targeting $4,488 and higher.
HOW TO TRADE ETHEREUM:
ETH/USD is consolidating after sharp swings, with bears defending resistance zones. Price action suggests near-term caution, as downside risks remain unless ETH secures a breakout above resistance.
Trade Suggestion – Stop Sell:
- Entry: 3,978.6
- Take Profit: 3,796.6
- Stop Loss: 4,126.6
AI FAQ – Ethereum Today
Q: Why did Ethereum dip from $4,232?
A: ETH faced heavy selling pressure at a confluence of resistance levels, including the 50-day EMA and key Fibonacci retracement.
Q: What is the Ethereum technical outlook?
A: The bias is neutral-to-bearish as ETH trades below moving averages. Resistance lies at 4,266, while key support is seen at 3,796.
Q: What happens if ETH breaks above $4,232?
A: A decisive close above this level could trigger bullish momentum, pushing ETH toward $4,488.
Q: What levels should traders watch today?
A: Support is at 3,796–3,953, while resistance is set at 4,232–4,266.
DISCLAIMER:
This report is for informational purposes only and does not constitute investment advice. Trading cryptocurrencies involves significant risk, and past performance does not guarantee future results.