Key takeaways
- ETH has fallen 1.6% in the past 24 hours and slipped below $4,200.
- Bears are targeting $4,000 as the broader crypto market undergoes a sell-off.
ETH fails to hold above $4,200
Ether, the second-largest cryptocurrency by market capitalization, failed to reach a new all-time high last week and has since lost roughly 10% of its value. It is down 1.6% over the last 24 hours, trading around $4,170 per coin at the time of writing.
The bearish move comes amid a broader cryptocurrency sell-off. Bitcoin has declined about 8% since last week’s record high and briefly dipped below $113,000. XRP has fallen under $3, and Solana has been unable to hold above $200.
Analysts say profit-taking is a key factor behind the recent downward pressure. In an email to CoinJournal, Ruslan Lienkha, Head of Markets at YouHodler, commented:
Profit-taking is indeed occurring right now, and in many cases it reflects disciplined risk management. This is especially true in the current environment where institutional discussion increasingly suggests we may be entering a later stage of the bull market. More asset managers point to US equities appearing overvalued, indicating the medium-term bullish trend could be nearing its end.
Analysts add that long-term investors are generally less affected by short-term dynamics, while those operating on a medium-term horizon — such as two- to three-year cycles — often employ relative strategies that lead them to lock in gains when markets appear stretched. In this context, realized profits may not signal a lack of confidence in further upside but rather prudent portfolio management to prepare for potential volatility.
ETH could drop to $4,000 as bears remain in control
The 4-hour ETH/USD chart has turned bearish despite Ethereum reaching a new annual high of $4,788 on Thursday. The coin failed to sustain the rally and has fallen nearly 14% since that peak.
At the time of writing on Wednesday, ETH traded around $4,170. Technical indicators are tilted to the downside, with the RSI at roughly 35 and the MACD signaling strong selling pressure in the market.
If the daily resistance near $4,232 holds, ETH could slide to the next major support at $3,946. A prolonged bearish run could see Ether retest the $3,300 lows for the second time this month.
Conversely, if ETH recovers and closes above the $4,232 daily resistance, bulls could push prices higher toward $4,488. Achieving the annual high of $4,788 would likely require renewed strength across the broader crypto market.