Ethereum Stuck Below $4,060: A Fakeout Or Fresh Leg Down To $3,600?

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Ethereumfinds itself at a crossroads after tapping the $3,800 liquidity level and bouncing back, only to stall below the key $4,060 region. With momentumhanging in the balance, traders are questioning whether this pause is simply a fakeout before a recovery or the start of a deeper move toward the $3,600 support level. Struggling Below $4,060: Key Support Yet To Be Reclaimed

Ted, a well-followed crypto analyst, recently shared his insightson Ethereum’s latest price action in a post on X. According to the expert, ETH successfully tapped into the $3,800 liquidity level, a move he had anticipated. This level acted as a key zonewhere buyers stepped in, providing the much-needed bounce for Ethereum after a short-term decline. Related Reading Wedge Breakout Or False Alarm? Ethereum Faces Its Biggest Support Test Yet 3 days ago

Following this bounce, Ethereum managed to recover some ground. However, Ted pointed out that the asset is still struggling to reclaim the $4,060 support region. This level has now become a crucial barrier for ETH, and its inability to hold above it leaves the market in a vulnerable position. ETH building momentum for an upward move | Source: Chart from Ted on X

The analystexplained that if Ethereum successfully flips the $4,060 level back into support, the market could see a fresh rally develop. Such a move attracts renewed bullish momentum, fueling optimism for a stronger push higher in the near term.

On the other hand, Ted cautioned that failing to reclaim this zone increases the risk of further downside. In such a case, Ethereum could see its price tumble back toward the $3,600 level, which stands as the next critical support area.  Fakeout Or Freefall? Ethereum Bulls Cling To Their Last Hope

According to Andrew Crypto, in a recent update postedon X, the technical outlook across the crypto market isn’t painting a bullish picture. Andrew highlighted that both BTC and ETH have broken down through key support levels, which increases the likelihood of further declines in the short term. Such breakdowns often suggest that buyers are losing strength, leaving room for sellers to dictate market direction. Related Reading Ethereum Price Recovery Strong – Major Resistance Test Coming Next 1 week ago

While acknowledging that the current setupmay not be pleasant for traders, Andrew pointed out that this weakness could present a significant opportunity for long-term investors, offering attractive entry points before the next major market cycle takes shape.

However, he also left room for cautious optimism. The only possible bullishscenario at this stage, Andrew explained, is if the current move proves to be a fakeout. In that case, a strong rebound could follow, flipping market sentiment back in favor of the bulls. ETH trading at $3,887 on the 1D chart | Source: ETHUSDT on Tradingview.com Featured image from iStock, chart from Tradingview.com