Ethereum (ETH) 4-hour chart is showing warning signs as the price hovers around a critical support zone. After sideways trading monthETH remains trapped in a consolidation, signaling weakening momentum in the middle broader and uncertain market conditions. According to a cryptocurrency analyst, ETH’s 4-hour chart suggests that the cryptocurrency could be headed for a significant price drop if buyers fail to regain control.
Ethereum Price Chart Signals Major Crash Ahead
New market analysis by crypto expert Tyrex calls attention to a 4-hour chart, warning that ETH could be prepare for another price crash. Tyrex note that Ethereum recently bottomed inside the purple rectangle on the lower timeframe, where the price fell below key support around $3,260, briefly triggering a liquidity sweep. However, this decision was quickly reversed, stating 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 remained largely unchanged. He said ETH has also repeatedly returned to the same support zone, raising concerns that demand could weaken. Notably, when prices continue to return to the same lows, it often signals increasing pressure, not strength.
On the chart, Ethereum is now consolidating just above the highlighted support zone. The momentum has slowed compared to the previous impulsive rally, and the price is still struggling to gain ground. Instead of continuing, the market appears to be faltering in one critical area.
According to Tyrex, this hesitation could constitute a major risk. Repeatedly retesting the same lows makes the market more vulnerable, increasing the likelihood of a deeper price drop. Notably, each retest makes it easier for sellers to break through support as buyers gradually lose control.
The analyst’s chart also depicts a potential downtrend if support gives way. A decline below the purple zone would put Ethereum at risk of sliding towards the next bearish zone between $3,209 and $3,221. At the time of Tyrex’s analysis, ETH was trading around $3,312, meaning a move to that range would have represented a decline of around 3%.
However, at the time of writing, Ethereum fell to $3,200–which is already below the analyst’s initial allocation target. This suggests that the bullish momentum has weakened further and the recent price decline could signal an even bigger decline, according to Tyrex analysis.
Analyst recommends ‘wait and see’ approach
While the Ethereum price navigates downtrendsTyrex advised investors and targets to take a wait-and-see approach. He indicated that the outlook for ETH is not entirely bearish. According to him, if Ethereum could sustain above $3,230, it would shift its bearish bias to a cautiously bullish one.
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Maintaining this level suggests buyers defend the range and avoid further declines. In this scenario, ETH could stabilize and potentially rise to $3,420, as highlighted by the green area on the chart.
Featured image from Pixabay, chart from Tradingview.com
