Ethereum's recent attempt to breach the $4,000 resistance level has once again fallen short, raising questions about potential downward movement toward $3,500 support levels.
The leading smart contract platform continues to face strong selling pressure at the psychological $4,000 mark, resulting in a notable rejection. This price action has formed what technical indicators signal as a double-top bearish reversal pattern, suggesting increased likelihood of a pullback.
Currently, ETH remains confined within a defined range between $3,500 and $4,000, with traders closely monitoring these key price levels. The 4-hour chart reveals that buyers previously defended the lower boundary of an ascending channel, triggering a rally toward $4,000 before the latest rejection occurred.
Market data from Binance's liquidation heatmap shows substantial liquidity clustering just above the $4,000 resistance level, representing short position liquidation points. This concentration of liquidity makes the zone particularly attractive for large market participants and could influence future price movements.
Near-term analysis suggests ETH may experience additional downward pressure toward the $3,700 support level before mounting another attempt at the stubborn $4,000 resistance. A successful breakthrough above $4,000 would signal renewed bullish momentum, while failure to hold current levels could see prices testing the $3,500 support zone.
The asset's price action remains particularly relevant against the backdrop of broader crypto market movements, as investors continue to navigate between key support and resistance levels in search of clear directional signals.