Ethereum (ETH) is currently trading around USD 4,391 after testing its all-time high from November 2021. The rejection at that level mirrors Bitcoin’s pullback on the same trading day last week, suggesting broader weakness across the crypto market.
The weekly chart shows a bearish pinbar candlestick, signaling potential continuation of the correction. This setup reinforces the risk of further downside, with the double top formation adding negative momentum. The USD 4,000 zone remains the first key support, as it previously acted as a major resistance. A decisive break below could pave the way toward USD 3,400, a deeper but technically significant support area.
Other factors also point to caution. Rising U.S. Treasury yields and ongoing dollar strength weigh on crypto sentiment, while profit-taking after a sharp rally is adding to pressure. On-chain data shows a slowdown in active wallet growth, which may indicate waning short-term demand.
Still, medium-term fundamentals remain supportive, with strong interest in Ethereum’s DeFi and staking ecosystem. However, in the short run, technical signals favor a correction. Traders should watch whether 4,000 holds — failure could open the door to a deeper retracement before the uptrend resumes.
