Ethereum (ETH) 4-hour chart is flashing warning signs as price moves around a critical support zone. After months of side tradingETH remains trapped in the consolidation, signaling a weakening momentum in the middle uncertain broader market conditions. According to a crypto analyst, ETH’s 4-hour chart suggests that the cryptocurrency could be headed for a major price drop if buyers fail to regain control.
Ethereum price chart signals an impending major decline
A new market analysis from crypto experts Tyrex draws attention to the 4-hour chart, warning that ETH could be preparing for another price drop. Tyrex recorded that Ethereum recently bottomed inside the purple rectangle on the lower time frame, where the price fell below key support around $3,260, briefly triggering a surge in liquidity. That move, however, was quickly reversed, indicating that it was rigging but a real bearish crash.
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Even after the rejection, the analyst found that Ethereum’s broader 4-hour pattern remains largely unchanged. He stated that ETH has also repeatedly returned to the same support area, causing concern demand may weaken. Notably, when price repeatedly returns to the same lows, it often signals rising pressure rather than strength.
On the chart, Ethereum is now consolidating right above the highlighted support zone. The momentum has slowed compared to the earlier impulsive rise, and the price is still struggling to gain upward traction. Instead of a continuation, the market seems to be hesitating in a critical area.
According to Tyrex, this hesitation could be a big risk. Repeated retesting of the same lows makes the market more vulnerable, increasing the likelihood of deeper price declines. Namely, each retest makes it easier for sellers to break through support as buyers gradually lose control.
The analyst’s chart also outlines a potential path lower if support breaks. A drop below the purple zone would put Ethereum at risk of sliding towards the next bearish area between $3209 and $3221. At the time of Tyrex’s analysis, ETH was trading around $3,312, meaning a move into this range would represent a roughly 3% drop.
However, as of writing, Ethereum fell to $3,200– which is already below the analyst’s initial target of a breakdown. This suggests that the upward momentum has weakened further, and the recent decline in prices could signal an even bigger decline, according to Tyrex’s analysis.
The analyst recommends a “wait and see” approach.
While it is The price of Ethereum is moving in bearish trendsTyrex advised investors and targets to adopt a wait-and-see approach. He indicated that ETH’s outlook is not entirely bearish. According to him, if Ethereum can hold above $3,230, it would change his bearish bias to cautiously bullish.
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Maintaining that level suggests customers defend the assortment and preventing further defects. In this scenario, ETH could stabilize and potentially climb towards $3420, as highlighted by the green zone on the chart.
Featured image from Pixabay, chart from Tradingview.com
