The Ethereum (ETH) 4-hour chart is showing warning signs as the price hovers around a critical support zone. After months of sideways tradingETH remains trapped in a consolidation, indicating weakening momentum in the period uncertain broader market conditions. According to a crypto analyst, ETH’s 4-hour chart suggests the cryptocurrency could be headed for a major price dump if buyers fail to regain control.
Ethereum Price Chart Signals a Major Crash Coming
A new market analysis by crypto expert Tyrex draws attention to a 4-hour chart and warns it could be ETH prepare for another price crash. Tyrex noted that Ethereum recently bottomed within the purple rectangle on the lower time frame, where the price fell below a key support around $3,260, briefly causing a liquidity surge. However, the move was quickly reversed, indicating that it was a fake rather than a true bearish breakdown.
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Even after the rejection, the analyst revealed that Ethereum’s broader 4-hour pattern remains largely unchanged. He stated that ETH has also repeatedly returned to the same support area, raising concerns Demand may decrease. Particularly when the price continues to visit the same lows, this often indicates growing pressure, not strength.
On the chart, Ethereum is now consolidating just above the highlighted support zone. The momentum has waned compared to the previous impulsive rally, and the price is still have difficulty gaining upward momentum. Instead of continuing, the market seems to be faltering at a critical point.
According to Tyrex, this hesitation could pose a major risk. Repeatedly retesting the same lows makes the market more vulnerable, increasing the likelihood of deeper price dumping. Notably, each new test makes it easier for sellers to break through support as buyers gradually lose control.
The analyst’s chart also outlines a potential path down if support breaks down. A drop below the purple zone would put Ethereum at risk of sliding into the next downside area between $3,209 and $3,221. At the time of Tyrex’s analysis, ETH was trading around $3,312, meaning a move to this range would have meant a drop of around 3%.
However, at the time of writing, Ethereum has fallen to $3,200–which is already below the analyst’s initial breakdown target. This suggests that upside momentum has weakened further and the recent price drop could mean an even bigger drop, according to Tyrex’s analysis.
Analyst recommends a wait-and-see approach
While the Ethereum price is navigating bearish trendsTyrex has advised investors and targets to adopt a wait-and-see approach. He indicated that ETH’s prospects are not entirely bearish. In his view, if Ethereum can hold above $3,230, this would shift its bearish bias to a cautiously bullish bias.
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Maintaining that level suggests buyers defend the range and preventing further negative consequences. In that scenario, ETH could stabilize and possibly rise to $3,420, as highlighted by the green zone on the chart.
Featured image from Pixabay, chart from Tradingview.com