Ethereum’s price has been battling the $4,000 mark for ages, failing to break through consistently. This price point is a major hurdle – success or failure here will dictate Ethereum’s future.
$4,000: The Make-or-Break Level
For over a year, $4,000 has been a psychological barrier for Ethereum. Crypto analyst The Alchemist Trader calls it a “high-timeframe barrier,” pointing to repeated price rejections at this level. Ethereum is currently testing the upper limit of a long-standing $1,300-$4,000 trading range.
The current situation is a high-stakes game. Breaking above $4,000 opens up significant opportunities, while failure could lead to a substantial price drop. Investors face a tough choice: bet on a price increase or a decrease.
What Happens Next?
Scenario 1: Breaking Through $4,000
A successful breakout could send Ethereum to new yearly highs. The next resistance levels would be $4,500 and then a potential all-time high around $5,000.
Scenario 2: Another Rejection
If $4,000 holds again, a significant price crash is possible. Remember the December 2024 rejection? That led to a brutal 60%+ drop, bottoming out near $1,500 months later. In this case, Ethereum would likely continue trading within its familiar $1,300-$4,000 range.
The Bottom Line
The Alchemist Trader’s advice? Caution. Until Ethereum decisively breaks above or below $4,000, it’s best to be reactive rather than trying to predict the market’s next move.
