Ethereum (ETH) 4-hour chart is showing warning signs as the price is hovering around a key support area. After months of trading asideETH is still stuck in consolidation, showing weak momentum in the middle uncertain broader market conditions. According to a crypto analyst, ETH’s 4-hour chart suggests that the cryptocurrency may be headed for a major price loss if buyers fail to regain control.
Ethereum Price Chart Shows Big Crash Coming
A new market analysis by crypto expert Tyrex draws attention to the 4-hour chart, warning that ETH may preparing for another price crash. Tyrex noted that Ethereum recently dropped inside the purple rectangle at the low time, when the price dipped below the key support around $3,260, briefly causing a liquidity sweep. However, this move was quickly reversed, indicating that it was fakeout instead of a true bearish collapse.
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Even after the rejection, the analyst revealed that Ethereum’s broad 4-hour pattern remains unchanged. He said that ETH has repeatedly returned to the same support area, raising that concern demand may weaken. Notably, if the price continues to visit the same decline, it usually indicates increasing pressure, not strength.
On the chart, Ethereum is now covering just above the highlighted support area. The pressure has dropped compared to the previous rapid rally, and the price is still there struggle to achieve upward mobility. Instead of progressing, the market seems to be skeptical of the critical area.
According to Tyrex, this doubt can be very dangerous. Repeatedly testing the same decline makes the market more vulnerable, which increases the likelihood of a deep price drop. Notably, each test makes it easier for sellers to break support as buyers gradually lose control.
The analyst’s chart also reveals a potential downside trend if the support holds. A break below the purple zone would put Ethereum at risk of sliding towards the next low between $3,209 and $3,221. At the time of Tyrex’s analysis, ETH was trading at around $3,312, which means that moving to this range would represent a drop of around 3%.
However, as written, Ethereum dropped to $3,200-which is already below the analyst’s original target. This suggests that the upward momentum has weakened further, and the recent price decline may indicate an even greater decline, according to Tyrex analysis.
Analyst recommends a “Wait and See” approach
While i Ethereum price is hovering in bearish trendsTyrex advised investors and targets to adopt a wait-and-see approach. He showed that the ETH theory is completely wrong. According to him, if Ethereum cannot hold above $3,230, he will change his bearish bias to bullish cautiously.
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Maintaining that level is suggestive buyers protect the range and to prevent other evils. In that case, ETH may stabilize and rise to $3,420, as highlighted by the green area on the chart.
Featured image from Pixabay, chart from Tradingview.com
