Why can’t Ethereum hold $4K? ETH recovery in doubt as data leans bearish

💡 DMK Insight

Ethereum’s current price of $3,880.22 is under pressure, and here’s why that matters: weak on-chain activity and low futures demand could push ETH down to $3,500. Traders should pay attention to the on-chain metrics, as they often signal broader market sentiment. A drop to $3,500 would not only test a significant psychological level but could also trigger stop-loss orders, leading to a cascade effect. If futures demand remains low, it suggests that institutional interest is waning, which could further exacerbate downward pressure. Look for any signs of recovery in on-chain activity or a spike in futures volume to gauge whether this bearish sentiment is temporary or indicative of a longer-term trend. On the flip side, if ETH manages to hold above $3,800, it could attract buyers looking for a bargain, especially if broader market conditions improve. Keep an eye on the $3,500 level as a critical watchpoint; a breach could lead to increased volatility in the coming days.