Ethereum’s Repeated Struggle at the $4,000 Resistance
Ethereum (ETH) is currently facing a significant challenge, having been rejected at the crucial $4,000 resistance level for the fourth time in recent history. The weekly price chart dated August 6, 2025, shows this consistent inability to push past the key psychological and technical barrier, which has impacted price movements over the past year. Since late 2023, the $4,000 mark has served as a major ceiling, preventing Ethereum from recording sustained gains above this level.
The latest peak in early August saw ETH approach this resistance before retreating to approximately $3,611, mirroring a pattern similar to the previous three peaks. This repeated failure indicates a consistent and strong selling pressure around this price point. The market is now closely watching to see if Ethereum can finally break this pattern or if it will face another significant correction.
Current Price Movement and Market Indicators
At the time of writing, Ethereum was trading at $3,728.25, marking a daily gain of 2.84%. This upward movement has pushed its market capitalisation to roughly $450 billion. Despite this price increase, the 24-hour trading volume has experienced a decline of over 15% to $26.51 billion, indicating a reduction in market activity compared to earlier sessions. This combination of a price increase on declining volume can often signal a lack of strong conviction and may be a cause for cautious momentum.
Intraday price action shows that Ethereum opened near $3,617 and, after a midday decline, rebounded to exceed $3,720, demonstrating an ongoing battle between buyers and sellers. The total and circulating supply of Ethereum remains at 120.7 million ETH, with no changes to the maximum supply, which remains uncapped. The dynamics of supply and demand are therefore a key factor in its price trajectory, as the network relies on its burn mechanism and staking to manage supply.
Technical Indicators Signal Mixed Momentum
The technical indicators for Ethereum are currently sending mixed signals, reflecting the market’s indecision at this critical juncture. The Moving Average Convergence Divergence (MACD) is showing bearish momentum, with the MACD line sitting 142.04 below the signal line. The MACD histogram has negative values of -41.26, indicating higher short-term selling pressure. This suggests that the trend is currently pointing downwards. However, the increasing separation between the MACD and the signal line could be an early sign of a potential bullish reversal should buying interest gain strength.
This divergence suggests a change in momentum towards a more bullish outlook, but it requires confirmation from price action and volume. Meanwhile, the Relative Strength Index (RSI) is at 60.68, which is below a recent peak of 66.26 but still above the neutral midpoint of 50. This level signals that while there is a strong buying trend, the asset is not yet in the overbought threshold of 70. The RSI’s position suggests that there is still room for the price to climb before becoming overheated, providing a glimmer of hope for bulls despite the bearish MACD signals.
Key Support and Resistance Levels to Watch
Below the crucial $4,000 resistance level, two primary support levels have been noted on Ethereum’s weekly chart. The first support zone is located around $2,450, a level where Ethereum found support multiple times during 2024 and early 2025. This area has historically acted as a key point for consolidation and price reversals, making it a critical level to watch if the price were to decline significantly. A lower support level near $1,575 formed during the market correction in mid-2025, where Ethereum saw a subsequent rally.
These support levels are essential for providing a base for the price to consolidate and potentially reverse a downtrend. Conversely, the repeated rejection at the $4,000 mark reinforces its status as a major resistance level that must be overcome for Ethereum to enter a new price discovery phase. The ability of the market to defend these support levels or break through the resistance will be a key determinant of Ethereum’s price trajectory in the coming months.
The Battle for $4,000 A Window into Market Sentiment
Ethereum’s repeated rejection at the $4,000 resistance level is not an isolated event but rather a reflection of broader market behaviour and psychology. Resistance levels are often areas where a large number of sell orders are concentrated, and a breakout requires substantial buying volume to absorb that supply. The consistent selling pressure at this level suggests that many long-term holders and short-term traders view this price as an opportune time to take profits. This profit-taking behaviour, coupled with a decline in trading volume, makes it difficult for bulls to sustain an upward move.
The pattern seen with Ethereum echoes similar price ceilings observed in other major cryptocurrencies, where key psychological levels become significant barriers. Understanding this market behaviour is crucial for anticipating future price movements and for distinguishing between a genuine reversal and a temporary bounce. The market’s reaction at these key levels provides a window into the prevailing sentiment and the balance of power between buyers and sellers.
Ethereum’s Price: New Highs or a Correction?
The path ahead for Ethereum is at a critical juncture. The network’s ability to eventually break through the $4,000 resistance will be a major test of its strength. If it succeeds, it could trigger a new phase of bullish momentum and potentially lead to new all-time highs. However, if the resistance holds and selling pressure intensifies, a significant correction towards the support levels at $2,450 or even $1,575 could be on the horizon.
The mixed signals from technical indicators like the MACD and RSI suggest a period of market indecision, where a clear catalyst is needed to determine the next move. This catalyst could come in the form of a major network upgrade, a surge in institutional interest, or a broader market rally. For now, all eyes will remain on the $4,000 resistance level, as its fate will largely determine the trajectory of Ethereum’s price in the coming months.
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