Ethereum Plunges 6% as Traders Bail at Critical $4K Resistance Wall

Ethereum hits a brutal speedbump on its road to $4K—traders flee as resistance holds firm.

Here's what's shaking the second-largest crypto:

The $4K psychological barrier bites back

Like clockwork, profit-takers pounced near Ethereum's Everest—flipping from greed to fear as the 6% drop triggered stop-loss cascades. Classic crypto volatility doing its thing.

Liquidity crunch or healthy correction?

Market makers shrug—this is just another Tuesday in crypto land. The real question? Whether this dip gets bought faster than a Wall Street banker's third vacation home.

Remember folks: in crypto, 10% moves are coffee stains on the chart. The $4K retest is coming—and when it breaks, even the hedgies will FOMO.

Technicals Show Strength, but $4K Holds Firm

According to crypto analyst Crypto Fella, ETH recently broke several tough resistance levels between $2,600 and $3,500. The rally stemmed from a strong bounce off a long-term trendline dating back to mid-2022. However, the $4,000 zone remains a psychological and technical barrier.

I just want $ETH – #Ethereum to break $4,000. pic.twitter.com/NQFxlCwgTh

Moreover, as shown by the data, the supply-heavy zone just above $3,800 forms the reason for selling pressure at present. Failure to take out $4,000 could pull Ethereum again to the $3,300–$3,500 zone. Still, the uptrend remains intact if ETH can hold above $2,900.

Could History Repeat Itself?

Analyst Merlijn The Trader believes Ethereum is mimicking its 2021 bull cycle. He points to a similar pattern of a “dead cat bounce,” a final support retest, then an explosive breakout. 

This Ethereum setup looks way too familiar.

Dead cat bounce. Final retest. Ignition loading.$ETH is copying 2021 step by step

But this time with BlackRock, ETFs, and institutional fuel.

Ready for $10K Ethereum? pic.twitter.com/CJDdOGPqWI

Ethereum completed a comparable retest near $2,000 recently and may now be entering the ignition phase. If the pattern holds, Ethereum could climb toward $8,000–$11,000 in the coming months.

Ethereum sits on a pivotal edge. A breakout above $4,000 could trigger another massive bull run. But failure might spark a correction. With ETFs growing, institutional demand rising, and historical patterns aligning, the market may be on the verge of something big—or bracing for a shakeout.

Also Read: SharpLink Adds 11,259 ETH on Ethereum’s 10th Anniversary