Ethereum fails again above $4K as traders grow frustrated with shakeouts
Ether fell below $4,000 due to strong resistance and declining spot ETF demand, potentially leading to a 20% correction.Summary
Ether (ETH) dropped to $3,800, failing to sustain the critical $4,000 psychological barrier, which analysts view as strong resistance. The inability to break above this level, which previously preceded a major drop in December 2024, suggests bulls lack the necessary momentum. This weakness is underpinned by negative net spot buying volume delta and significant outflows from spot Ethereum ETFs, which saw $145.7 million redeemed on Monday alone. Technically, the price action has formed a bear flag pattern on the 12-hour chart, signaling a breakdown below $4,000 with a measured target around $3,120, representing a potential 20% drop. While technical indicators favor the downside, some traders remain optimistic, suggesting the current price action might be a necessary shakeout before a rapid expansion higher.
(Source：Cointelegraph)