ETH in a Tug of War: Will Ethereum Defy Gravity or Slip Through the $4K Trapdoor?

• Ethereum is currently hovering around the $4.1K level.
• The market has seen $174.76M worth of ETH liquidated.

The bearish crypto market has taken a hit, losing momentum. The assets are bleeding and dragging the global market cap down to $3.83 trillion. The largest asset, Bitcoin (BTC), is feeling the bear heat, hovering at around $113.5K. Will Ethereum (ETH) bring the earlier potential weakness back into the bag?

The largest altcoin, with multiple recovery attempts, has jumped above $4K. If the current bearish pressure toughens, the price may retrace and fall back to the former lows. Ethereum has tumbled by over 1.96% in the last 24 hours, raising concerns about further price movement.

The altcoin opened the day trading at a high range of $4,337. As the bears woke up and gained control of ETH, they pulled the price back to a bottom level of $4,064. The CoinMarketCap data reveal that as of this writing, Ethereum traded at around the $4,161 zone.

With the ETH’s market cap of $502.64 billion, its daily trading volume has spiked by over 2.28%, reaching $49.58 billion. It is worth noting that the market has observed a liquidation of $174.76 million worth of Ethereum during the interval, as per Coinglass data.

Will Ethereum Continue Its Current Downtrend?

The Moving Average Convergence Divergence (MACD) line and signal line of the ETH/USDT trading pair have crossed below the zero line. This crossover indicates that the overall weak trend is in negative territory. In addition, the Chaikin Money Flow (CMF) indicator of Ethereum resting at -0.17 suggests selling pressure in the market. With this value, the bearish bias is moderate, not extreme, and the money is likely flowing out of the asset.

The active bearish sentiment of the altcoin could trigger the price to slide and find the nearby support at the $4,156 range. Ethereum might invite a prolonged risk as the bears gain more strength, with the emergence of a death cross. The price would plunge to a low of $4,151 or even lower.

Conversely, assuming Ethereum reverses its momentum bullish, it could climb and challenge the resistance at $4,166. A steady correction on the upside might push the asset up and initiate the formation of the golden cross, with the possibility of the price reaching a level of $4,171 or higher.

Moreover, the altcoin’s Bull Bear Power (BBP) value of -156.20 implies a strong bearish dominance, and pushes the price below, hinting at weakness in the current trend. Ethereum’s daily Relative Strength Index (RSI), at 39.71, signals the lower range of neutral territory, leaning slightly toward being oversold. It shows a mild bearish momentum.