Ethereum Price Breaks Below $4,000 – Is a Deeper Correction Ahead?

Ethereum (ETH) is facing severe bearish pressure, having lost 13% of its value over the past week and breaking below the critical psychological support level of $4,000. This drop is driven by a strong bearish consensus in the market and a significant institutional retreat, which raises the risk of a deeper price correction in the near term.

Key Factors Driving the Breakdown

The article highlights two major factors contributing to Ethereum’s struggle to hold the $4,000 mark: Institutional Retreat: Spot ETH ETFs have seen net outflows totaling $217 million this week. This mass withdrawal of funds by institutional investors signals a reduced level of support for the asset, exacerbating the downward momentum and making the price more vulnerable to volatility.Bearish Futures Sentiment: The long/short ratio in the ETH futures market has fallen to 0.95, indicating that the majority of traders are now betting on a price decline (short positions outweigh long positions). This strong bearish bias in the derivatives market suggests that traders anticipate further downside.

The Price Outlook

As ETH trades just below the $4,000 level, it is currently holding near the immediate support floor of $3,875. If the intense selling pressure continues and this support level fails to hold, the price could drop further to test $3,626. Conversely, a strong return of buyer demand would be required to reclaim the $4,000 level and push the price toward the resistance at $4,211.

📌 Conclusion: A Critical Test for Ethereum

The breach of the $4,000 level marks a serious loss of momentum for Ethereum. The simultaneous institutional pullback and the overwhelming bearish sentiment in the futures market paint a challenging picture for the altcoin’s immediate future. The critical test now lies at the $3,875 support. The ability of ETH to defend this floor will determine whether the recent drop is a brief correction or the beginning of a more prolonged and deeper bearish phase.

🔐 Disclaimer

This article is for informational purposes only and does not constitute financial advice. The cryptocurrency market is highly volatile, and investments carry a significant risk. You should always conduct your own research (DYOR) and consult with a professional financial advisor before making any investment decisions.

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