Ethereum is at a pivotal moment after hitting the $3,800 liquidity level and experiencing a rebound, yet it remains stalled beneath the significant $4,060 threshold. With momentum in doubt, traders are speculating whether this lull indicates a mere fakeout before recovery or the onset of a deeper decline towards the $3,600 support level.
Struggling Below $4,060: Key Support Yet To Be Reclaimed
Ted, a prominent crypto analyst, recently offered his observations on Ethereum’s current price trends in a post on X. He noted that ETH has effectively touched the $3,800 liquidity level, a move he had predicted. This zone has become pivotal as buyers engaged, providing the essential bounce for Ethereum following a brief decline.
After this bounce, Ethereum made some recovery efforts. However, Ted emphasized that the asset still struggles to reclaim the $4,060 support region. This level has turned into a critical barrier for ETH, and its failure to maintain positioning above it leaves the market in a precarious state.
The analyst elaborated that if Ethereum manages to convert the $4,060 level back into support, the market could witness a fresh rally. Such a scenario would attract renewed bullish momentum, inciting optimism for a stronger upward movement in the short term.
Conversely, Ted warned that failure to reclaim this area heightens the risk of further declines. In this case, Ethereum might see its price fall back towards the $3,600 level, which is the next significant support zone.
Fakeout Or Freefall? Ethereum Bulls Cling To Their Last Hope
Andrew Crypto reported in a recent update posted on X that the technical outlook for the crypto market does not favor bullish trends. He noted that both BTC and ETH have broken below key support levels, raising the probability of further declines in the near term. Such breakdowns typically indicate a weakening of buyer strength, allowing sellers to take control of market movement.
Accepting that the current scenario might not be ideal for traders, Andrew suggested that this weakness could present a valuable opportunity for long-term investors, offering appealing entry points before the next significant market cycle unfolds.
However, he also expressed a note of cautious optimism. The only conceivable bullish scenario at this time, according to Andrew, is if the ongoing move turns out to be a fakeout. Should that occur, a robust rebound might ensue, reversing market sentiment back in favor of the bulls.
