Warning signs are flashing on the 4-hour Ethereum (ETH) chart as the price oscillates around a critical support zone. After months of sideways tradingETH remains trapped in consolidation, which signals weakening momentum in the market uncertain broader market conditions. According to a cryptocurrency analyst, ETH’s 4-hour chart suggests that the cryptocurrency could be headed for a major price decline if buyers do not regain control.
Ethereum price chart signals a major disaster coming
New market analysis from cryptocurrency expert Tyrex highlights the 4-hour chart, warning that ETH may be preparing for another price crash. Tyrex excellent 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. However, this move was quickly reversed, indicating that it was a forgery not a true bear crash.
Even after the rejection, the analyst revealed that Ethereum’s broader 4-hour pattern remains largely unchanged. He stated that ETH has also returned to the same support area multiple times, which raises concerns demand may be weakening. It’s worth noting that when price consistently returns to the same lows, it often signals increasing pressure, not strength.
On the chart, Ethereum is currently consolidating just above the highlighted support zone. The pace slowed compared to the previous impulsive augment, and the price remains unchanged struggling to gain traction upwards. Instead of continuing, the market appears to be swinging in a critical area.
According to Tyrex, this hesitation can pose a sedate risk. Repeatedly retesting the same lows makes the market more vulnerable, increasing the likelihood of a deeper price decline. It’s worth noting that each retest makes it easier for sellers to break support as buyers gradually lose control.
The analyst chart also shows a potential downside path if support gives way. A drop below the purple zone would put Ethereum at risk of sliding towards another bearish area between $3,209 and $3,221. At the time of Tyrex’s analysis, ETH was trading at around $3,312, which means moving into that range would mean a drop of around 3%.
However, at the time of writing Ethereum fell to $3,200– which is already below the analyst’s initial goal. This suggests that growth momentum has weakened further, and according to Tyrex’s analysis, the recent price decline may signal an even greater decline.
The analyst recommends a “wait and see” approach.
While Ethereum price is moving in bearish trendsTyrex advised investors and targets to take a wait-and-see approach. He indicated that ETH’s prospects are not entirely bearish. According to him, if Ethereum can stay above $3,230, it will change his bearish stance to a cautiously bullish one.
Suggests maintaining this level buyers defend the range and preventing further declines. In this scenario, ETH could stabilize and potentially augment towards $3,420, highlighted by the green zone on the chart.
Featured image from Pixabay, chart from Tradingview.com
