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Ethereum Approaches Support Zone – Can Buyers Stop Further Losses?

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Aayush Jindal

Key Highlights

  • Ethereum started a downside correction after trading close to $5,000.
  • ETH is approaching a connecting bullish trend line with support at $4,020 on the daily chart.
  • Bitcoin price is consolidating losses below the $110,000 resistance.
  • XRP is struggling to gain pace for a move above the $3.00 level.

Ethereum Technical Analysis

Ethereum traded to a new all-time high near $4,951 and started a downside correction. ETH dipped below the $4,650 and $4,550 levels.

Looking at the daily chart, the price dipped below the 23.6% Fib retracement level of the upward move from the $2,108 swing low to the $4,951 high. However, the bulls are now active above the $4,000 support zone.

There is also a connecting bullish trend line with support at $4,020 on the same chart. The next major support is $3,865 or the 38.2% Fib retracement level, below which the price could slide toward $3,700.

Any more losses might call for a move toward the 100-day simple moving average (red) and the 61.8% Fib retracement level at $3,250. On the upside, the price is facing hurdles near the $4,500 level.

The next major resistance is near the $4,550 level. A daily close above the $4,550 resistance zone could start another steady increase. In the stated case, the price may perhaps rise toward the $4,800 level. The next stop for the bulls may perhaps be $5,000.

Looking at Bitcoin, there was a fresh decline, and the bears seem to be active below the $112,000 pivot level.

Economic Releases

  • US ISM Manufacturing Index for Aug 2025 – Forecast 49.0, versus 48.0 previous.
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