- Ethereum failed to reclaim $4,200–$4,350, turning the zone into resistance as bearish momentum dominates.
- Short setups remain valid below $4,450 with sellers defending every retest, keeping downside pressure intact.
- Whale transfers worth $242M add volatility as ETH risks deeper tests near $3,800–$3,900 support.
Ethereum failed to reclaim its broken support, confirming bearish momentum continues to dominate market structure. Each retest has attracted sellers, and until resistance is reclaimed with conviction, the bearish tilt remains firmly in place.
Failed Reclaim Confirms Bearish Control
Alpha Crypto Signal noted on X that Ethereum failed to reclaim broken support and is now trading near $4,050. Every retest of the zone has triggered renewed selling, confirming the breakdown is real rather than a short-lived fakeout.
The chart structure reflects this shift clearly. Ethereum fell below the horizontal band of between $4,200-$4,350 which previously provided a fundamental point of resistance. On the pullback, the same zone flipped to resistance. Daily candles since the break have shown steady downside pressure, forming lower highs.
Momentum indicators also align with the bearish view. The 9-period EMA sits at $4,279 and continues to slope downward. The 50-period SMA is higher, around $4,404, creating resistance overhead. The 9 EMA trading under the 50 SMA signals control remains with sellers.
Volume and Trading Structure Support Downside
Volume readings confirm conviction behind the breakdown. The day of the support loss recorded a large red volume bar, signaling distribution by higher timeframe sellers. Since then, each retest has come with heavier selling volume than buying, showing supply remains strong.
Buyers appear tentative in this environment. Reduced volume on recovery attempts indicates demand is reactive rather than proactive. This dynamic suggests rallies may continue to face resistance as traders prefer to exit positions rather than accumulate.
Ethereum is, as of writing, priced at $3997.64, following a 4.42% drop on a daily basis. Capitalization is at $482.53 billion and has 24-hour trading volume that raised 16% to 40.95 billion. This confirms market activity is rising during the correction, not stabilizing.
Whale Activity and Potential Downside Targets
On-chain flows reveal large movements of Eth during the correction. Crypto Avails reported that three new wallets received 58,384 ETH worth $242.29 million from exchanges Kraken and BitGo. These transfers during a decline add uncertainty to the immediate outlook.
Traders are monitoring structural demand levels for potential downside targets. The first demand cluster sits at $3,800–$3,900, an area of prior consolidation. If this fails to hold, the next structural zone lies near $3,400–$3,600, where multi-week buyers had previously entered.
Alpha Crypto Signal suggests shorts on failed retests remain the clean tactical approach. The invalidation level sits above $4,450, which aligns with the 50 SMA and broken resistance band. Until Ethereum reclaims this area, bias remains in favor of sellers.
