Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

A recent attempt was made to break Ethereum's psychological resistance of $4,000, a crucial level that is fundamental for the asset's performance. Although Ethereum has been steadily rising since November, the asset's short-term trajectory is called into question by this rejection at $4,000.

The current price of ETH is about $3,915, which is just below the target of $4,000. A sound bullish structure with higher lows and higher highs is evident in the price action. Strong selling pressure, however, is indicated by the rejection at $4,000, which may cause a brief retracement before another upward move.

The most important support level to keep an eye on if Ethereum is unable to recover $4,000 in the upcoming attempt is approximately $3,610, which is in close proximity to the 26 EMA on the daily chart. Throughout the current uptrend, this level has served as a dependable dynamic support.

Ethereum may be vulnerable to additional drops toward the $3,217 zone, a crucial area indicated by the 50 EMA if it breaks below this support. Breaking through $4,000 could pave the way for a rally toward $4,300, which is psychologically significant and in line with prior price action resistance. The next target after that is $4,500, which is an even more bullish milestone. 

Although there are indications of possible divergence, the chart's RSI indicator is still in bullish territory. This could increase the chance of a short-term correction by indicating that although the upward momentum is still present, it is waning. The volume levels also point to a decline in participation, which might affect ETH's capacity to rise in the absence of new demand.

Although Ethereum's structure is still bullish, the fact that it has not broken $4,000 highlights how crucial this resistance level is. For the bullish momentum to continue, the $3,610 support will be essential, and a break of $4,000 might signal a major leg up. Around these crucial levels, traders should keep a careful eye on price movement.

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.