Ethereum has faced repeated rejections at $4K in 2024 despite occasional bounces.
Ethereum is rejecting at $4K due to market uncertainty, profit-taking, and strong resistance.
Ethereum (ETH) has been struggling to break above the $4,100 mark, a level it last crossed in March 2024 but has since faced repeated rejections. Despite occasional bounces, ETH has failed to maintain momentum above this key level, even as Bitcoin (BTC) continues to hit new highs. Today, Ethereum’s price dropped over 12%, reaching an intraday low of $3,098 before recovering slightly to $3,475, marking an 8.43% increase in the past 24 hours. However, the market remains weak, with trading volume down nearly 30%, signaling a lack of enthusiasm from traders.
Ethereum is facing multiple rejections at the $4,000 level due to a mix of market uncertainty, profit-taking, and technical resistance. Broader crypto market volatility, influenced by global economic conditions and Bitcoin’s price movements, is leading to cautious sentiment, which prevents a sustained breakout.Â
Additionally, many traders are locking in profits as ETH approaches this key level, creating selling pressure. From a technical standpoint, $4,000 has become a significant resistance zone, with previous failed attempts to break through strengthening this barrier. As a result, Ethereum is stuck in a consolidation phase until clearer market signals emerge.
Zooming in, 24-hour technical indicators suggest a neutral to slightly bearish outlook. The RSI stands at 41, showing the market is neither overbought nor oversold. Meanwhile, the Bear Power at -6.47 outweighs the bullish power of 3.21, pointing to bearish market sentiment.
Ethereum Gains Institutional Backing Amidst Price Struggles
Despite these challenges, the altcoin is attracting attention. The SEC has approved the first-ever Bitcoin and Ethereum dual exchange-traded fund (ETF), offering institutional investors an easier way to gain exposure to the two largest cryptocurrencies. This approval, driven by firms like Hashdex and Franklin Templeton, marks a significant step toward broader crypto adoption.
Additionally, World Liberty Financial, part of Donald Trump’s investment network, continued buying altcoins, including Ethereum. On Dec 20, World Liberty Financial made a strategic purchase of $2.5 million worth of ETH—just a day after Ethereum’s price dropped nearly 15%.
While the cryptocurrency is struggling to regain ground above $4,100, this increased institutional interest could provide the support it needs. If whales continue to accumulate Ethereum at these lower price levels, there is potential for a price recovery that could bring ETH closer to the $4,500 zone.Â
However, the range could still face short-term volatility, with the possibility of further declines to around $3,200. If this happens, Ethereum could experience additional bearish momentum, potentially pushing the price down to as low as $3,000 before any significant recovery takes place.
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