Ethereum Battles to Hold $4,000 as Bulls Defend Key Support

Ethereum (ETH) has reclaimed the $4,000 level after a sharp pullback, but the fight to maintain this crucial threshold remains intense. The cryptocurrency bounced back from its 100-day EMA near $3,800 following a steep drop from highs close to $4,800. This rebound signals that buyers are still active, though momentum has not yet fully shifted in favor of the bulls. Currently, ETH trades slightly above $4,000, but technical indicators show mixed signals for its next move.

The Relative Strength Index (RSI) recently approached oversold conditions around 37, creating an opportunity for technical traders to buy into the recovery. Trading volume shows increased interest, yet not at the levels required to fuel a sustainable long-term rally. This makes $4,000 a critical battleground, serving both as a psychological barrier and a mid-range pivot between $3,800 support and $4,300 resistance.

If Ethereum can maintain stability above $4,000, the next upside targets lie at $4,280 and $4,300, where the 50-day EMA converges with a descending resistance trendline. A successful breakout beyond these levels could clear the path toward $4,600 and potentially retest cycle highs near $4,800. However, risks remain. A failure to hold $4,000 could trigger another retest of $3,800, which stands as the last strong support before exposing ETH to the 200-day EMA near $3,400.

In summary, Ethereum’s recovery above $4,000 is encouraging but fragile. Bulls must continue defending this level to keep upward momentum alive. Any weakness could turn the recent bounce into just another relief rally within a broader correction phase. Investors and traders are closely watching whether ETH can convert $4,000 from a battleground into a launchpad for the next bullish leg.