- IncomeSharks notes repeated dips below support followed by fast recoveries, reinforcing bullish resilience.
- Analyst Ted says only a weekly close above $4K would confirm continuation, comparing it to Bitcoin’s $12K breakout.
- Structured 10% profit taking at resistance levels suggests confidence but keeps $4,800 dependent on sustained strength.
Ethereum’s price action continues to revolve around a single number: $4,000. The level has acted as both a support and top in recent weeks, creating a battleground that now dictates short term direction.
According to IncomeSharks, the asset has repeatedly dipped under key supports before rapidly recovering, forming what they describe as “fakeouts” that trap bearish traders. These rebounds have reinforced confidence among buyers, yet the question remains whether the current attempt to reclaim $4,000 will finally stick.
Repeated Reclaims Fuel Bullish Pressure
Earlier tests of $3,600 and $4,000 followed a similar pattern. Each breakdown was brief, followed by an aggressive recovery. Those reversals highlighted persistent demand, reinforcing $3,600 as a strong support base.
However, the $4,000 region continues to act as a dividing line between consolidation and expansion. IncomeSharks notes a strategy of selling 10% at each resistance point, marking $4,800 as the next major target if momentum holds.
This structured approach indicates growing confidence among traders who prefer scaling profits rather than exiting entirely. Yet the latest rejection below $4,000 introduces uncertainty, forcing market participants to decide whether the current bounce reflects another bear trap or a genuine breakout attempt.
Similarities with Bitcoin’s 2020 Breakout
Analyst Ted emphasizes that only a strong weekly close above $4,000 would confirm continuation. He draws comparisons to Bitcoin’s behavior in 2020, when $12,000 acted as a similar gatekeeper before a rapid expansion phase. His perspective frames $4,000 not as an ordinary resistance, but as a psychological benchmark that could trigger a broader rally once fully reclaimed.
Notably, the historical significance of this zone adds further weight to his assessment. Previous cycles saw similar stalling points act as launchpads once resolved decisively, suggesting that weekly structure may matter more than intraday volatility.
Next Move Depends on Stability Above $4,000
The immediate test now lies in Ethereum’s ability to stabilize rather than merely spike. A sustained presence above $4,000 would open room toward $4,400 and $4,600, aligning with prior resistance layers. However, failure to maintain that footing could invite a return to $3,600, where prior recoveries began.
Every recent bounce has reinforced the trend, yet each rejection has reset expectations. With structured selling already occurring into strength, momentum now rests on whether buyers maintain control long enough to convert resistance into support.
