[Ethereum price prediction, ETH falls below $4,000, is it a time to buy or sell on dips? 】
Following the successful deployment of the Dencun upgrade to the Ethereum mainnet, the market is pessimistic about Ethereum’s price predictions and believes that there may be a significant decline. The second-ranked cryptocurrency rose as high as $4,087 on Wednesday, hitting recent highs before falling to an opening price below $4,008.
Ethereum is currently trading at $3,955, down 2.5% in 24 hours, with trading volume down 20%, indicating waning interest from traders. With a market cap of $477 billion, it’s still well below Bitcoin’s $1.4 trillion market cap.
The Dencun upgrade introduces new features, notably lower fees for layer-2 protocols like Arbitrum, that are expected to boost growth. The upgrade also enables a new way of storing data on the blockchain - "blobs". This is the biggest protocol improvement in the past year and is expected to significantly affect the scale landscape of Ethereum, benefiting second-layer protocols the most.
However, the Dencun upgrade failed to be a significant driver of the market, with selling pressure quickly offsetting the uptrend from recent highs. The four-hour chart shows that Ethereum price has fallen below the $4,000 mark and the 20-day exponential moving average (EMA), with a neutral and downward sloping relative strength index (RSI) suggesting that ETH may be looking for new liquidity.
If Ethereum sustains a close below $4,000, a correction towards sub-$3,900 could accelerate. Investors should watch for short-term support at $3,950, with a break below $3,900 and the 50-day EMA potentially triggering a fresh uptrend.
Ethereum faces major resistance between $3,963 and $4,083, with around 1.64 million wallet holders buying at an average cost of $4,027 who may be looking to sell near the equilibrium point, curbing upward momentum. The IOMAP model shows strong support between $3,605 and $3,725, with approximately 835k addresses purchasing 4.11 million Ethereum in this range. This model can provide a certain level of prediction if the price of ETH continues to decline.
