ETH Struggles After Sharp Drop, Can It Overcome Resistance and Target $4,000?

• Ethereum faces strong resistance near $2,300; a breakout could push towards $4,000, but failure may lead to $1,500.
• Descending trend dominates, with lower highs and strong selling pressure keeping ETH in a cycle of rallies and corrections.
• Key support at $2,300 tested, now turned resistance; buyers need to reclaim this level for any sustained recovery.

Ethereum (ETH) is at a critical juncture as it battles a key support-turned-resistance level according to Zayk. The price has declined sharply, testing crucial levels that could determine its next move. The latest weekly chart highlights the strong close above this barrier. If achieved, Ethereum may target the $4,000. However, failure to hold support could drive the price down to $1,500.

Ethereum Tests Resistance After Sharp Decline

At $2,178.55, the price of ETH/USDT has dropped 13.48%. A historical resistance level was challenged by the price, and it has now converted into support. Strong bullish momentum used to be generated by this level, but recent selling pressure has produced a reversal.

A weekly close above this level could reignite bullish sentiment. This resistance, located near $3,900, has rejected multiple attempts in the past. Holding above $2,300 is crucial for any upward continuation. However, failure to reclaim this level may result in further downside. The price action indicates Ethereum is moving through cycles of rallies and corrections. The next move depends on whether buyers can establish support. 

Price Action and Trend Analysis

Ethereum remains in a descending trend, forming lower highs and lower lows as seen in Crypto Fella’s data. A downward trendline continues to suppress any breakout attempts. Each rejection at this trendline confirms strong selling pressure, limiting price recovery.

A key support level around $2,300, marked by a purple rectangle, has been tested multiple times. The price recently dipped below but rebounded quickly. This suggests buying activity near this zone. However, the lower boundary of this rectangle has now turned into resistance.

Currently, Ethereum is trading at $2,213.32, attempting a recovery. A lower horizontal line marks another key support area. The price briefly fell below this level before bouncing back. Despite this, Ethereum remains under the influence of the descending trend structure.