Ethereum’s recent surge has brought ETH into a critical technical zone, with sellers swarming around the $4,300 level. While some traders are taking profits after the impressive rally from sub-$3,500 levels in late July, others believe this could be the final pullback before a fresh breakout that sends ETH toward new yearly highs.
ETH Faces Key Resistance at $4.3K
After weeks of bullish momentum, ETH is now testing a major resistance zone at $4,300 a price point that has historically triggered increased selling pressure. On the daily chart, Ethereum is consolidating after a strong climb, with profit-taking clearly visible in recent sessions.
The current market structure shows that buyers remain active, but momentum has slowed. Volumes have tapered slightly compared to the breakout days in late July, suggesting traders are cautiously waiting for confirmation before pushing higher.
Source: Trading View
Why Sellers Are Active Now
The sudden surge in selling activity near $4.3K comes down to three main factors:
- Psychological resistance: $4,300 is a round-number level where short-term traders often book gains.
- Overbought signals: Technical indicators, including the RSI, have been hovering in overbought territory for days.
- Macro uncertainty: Broader crypto sentiment has been mixed, with Bitcoin facing its own resistance near $90K, limiting ETH’s upside momentum.
Short-Term Doubts, Long-Term Confidence
Despite the selling pressure, many analysts remain optimistic about ETH’s long-term trajectory. On-chain data shows continued inflows into Ethereum staking contracts, indicating strong conviction among long-term holders.
DeFi activity on the Ethereum network also remains robust, and Layer-2 scaling adoption is driving more transactions and fee revenue for the network, both bullish fundamentals that could support further price appreciation.
Scenarios to Watch
- Bullish Breakout: If ETH clears $4,300 with strong volume, the next resistance sits around $4,450–$4,500. A decisive break could pave the way toward $5,000 in the coming weeks.
- Extended Consolidation: Failure to close above $4,300 could see ETH range between $4,050 and $4,300 for several sessions before the next move.
- Deeper Pullback: A break below $4,050 could test $3,850 support — a level where buyers have previously stepped in aggressively.
From a technical perspective, the bullish structure remains intact as long as ETH holds above $3,850.
Is This the Last Dip Before a Massive Rally?
History suggests that ETH often experiences sharp but brief corrections after testing major resistance levels, followed by significant upward moves if broader sentiment remains bullish. With Ethereum’s network fundamentals strong, institutional interest growing, and staking participation increasing, the probability of another leg up remains high provided Bitcoin maintains stability above key support levels.
In short, while the $4,300 zone is proving to be a temporary ceiling, the underlying market structure hints that this may be a pause rather than a peak. Traders watching for confirmation of a breakout could soon see ETH testing fresh highs.
