Ethereum fails again above $4K as traders grow frustrated with shakeouts

💡 DMK Insight

Ether’s struggle at the $4,000 mark is a critical juncture for traders, especially given the weak buying pressure and declining spot flows. This resistance level has historically been a psychological barrier, and if ETH fails to hold above $3,100, it could trigger a wave of selling that tests lower support levels. Traders should keep an eye on the RSI, which is hovering around neutral territory, indicating indecision in the market. If it dips below 40, that could signal further bearish momentum. Additionally, the broader crypto market is feeling the pinch from macroeconomic factors, including rising interest rates and regulatory scrutiny, which could dampen investor sentiment. The lack of institutional buying could mean that retail traders are left holding the bag if prices fall. Watch for volume spikes; a significant increase could indicate a shift in sentiment, either way. If ETH breaks below $3,100, it might not just affect ETH but could also drag down altcoins that typically follow its lead, creating a cascading effect across the market. As we approach the end of the month, keep an eye on any upcoming economic data releases that could impact market liquidity and sentiment. The next few days will be crucial for determining whether ETH can regain its footing or if it will succumb to bearish pressures.