Ethereum News Today: Ethereum Falls 6.7% as $4,000 Resistance Remains Unbroken Amid Tariff Pressure

Ethereum’s price has been consolidating within a tight range between $3,200 and $4,000 for an extended period, with the $4,000 level acting as a persistent resistance and key psychological barrier [2]. Recent price action has repeatedly failed to push past this threshold, contributing to a broader bearish sentiment amid a wider market decline influenced by U.S. tariffs and seasonal trends [6]. In the past few years, Ethereum has experienced August declines ranging from 7.3% to 22%, raising concerns about a potential downturn [7]. As of the latest data, the Ethereum price has dropped nearly 6.7% in recent days, slipping from $3,700 to around $3,400 [6].

Despite the bearish pressure, some analysts remain cautiously optimistic about Ethereum’s trajectory. Mike Novogratz, co-founder of Galaxy Digital, has suggested that Ethereum may not be close to a crash yet and could be positioning itself for a breakout beyond $4,000 before the end of 2025 [9]. His outlook challenges the traditional bearish interpretation of a "quadruple top" formation—where repeated rejections at the same level typically signal a breakdown—arguing that a successful breakout from the $4,000 resistance could trigger a bullish reversal [9].

On-chain data indicates that Ethereum remains active, with active addresses reaching near two-year highs [5]. This suggests continued network engagement despite the downward pressure on price. However, trading volume has been weak, especially near the $3,400 level [8], and the price has fallen by 3.5% in the last 24 hours [5].

Crypto analyst Marcus Corvinus has highlighted a hidden bullish dynamic in Ethereum’s price action, noting that the altcoin has been forming stronger lows compared to Bitcoin, while the RSI has shown a bullish divergence [1]. Corvinus argues that this reflects strength under pressure and suggests that the current pullback is a temporary setback before a continuation of the upward trend. His target remains between $7,000 and $8,000 this cycle [1]. Meanwhile, BitMEX co-founder Arthur Hayes has suggested that Ethereum may yet test the psychological $3,000 level before the next upward leg, citing U.S. tariffs and weak job data as contributing factors [2].

The broader crypto market has also been affected by U.S. tariffs, which have triggered a $150 billion sell-off, dragging down prices for both Bitcoin and Ethereum [4]. While these external factors have heightened fears of a deeper correction, some traders remain bullish on Ethereum’s long-term potential, especially given its recent outperformance against Bitcoin [10].

The Ethereum community continues to closely monitor price movements, with discussions frequently taking place on platforms such as r/Ethereum [3]. The debate centers on whether the current pullback is a short-term correction or the start of a larger bearish phase. With the $4,000 level holding significant historical weight and mixed signals from traders and analysts, the immediate direction for Ethereum remains uncertain.

Source:

[1] https://u.today/ethereum-confirms-hourly-death-cross-whats-next-for-eths-price

[2] https://www.tradingview.com/news/newsbtc:babc27973094b:0-ethereum-price-crash-or-rebound-why-4-000-holds-the-key/

[4] https://coindcx.com/blog/price-predictions/ethereum-price-weekly/

[5] https://bitcoinist.com/ethereum-activity-soars-active-near-2-year-highs/

[6] https://99bitcoins.com/news/altcoins/live-massive-crypto-liquidations-to-precede-a-big-pump-best-crypto-to-buy-now/

[7] https://crypto.news/crypto-crash-why-are-altcoins-going-down-today-08-01/

[8] https://coinpedia.org/price-analysis/u-s-tariffs-spark-crypto-sell-off-whats-the-next-move-for-btc-and-eth/

[9] https://u.today/mike-novogratz-stuns-with-rare-ethereum-eth-price-outlook

[10] https://www.aol.com/why-ethereum-suddenly-beating-bitcoin-093002330.html