Ethereum bulls failed to sustain above $4000 level for long, leading to a strong pullback amid the Bitcoin price drop under $104,000.
Ethereum price has declined 5.75% from its Monday high of $4,109 this week after the altcoin formed a bearish engulfing pattern on the daily chart.
The Federal Reserve is scheduled to announce its interest rate decision during its meeting on Wednesday.
This is ETH’s third rejection at $4,000 in 2024, a level proving to be a strong weekly resistance during the past two attempts earlier this year.
The $4,0000 weekly resistance has been tested five times since 2021 and thrice in 2024, but a bullish breakout above the level has eluded Ethereum.
Despite immediate bearish sentiments, Ether’s market structure has maintained an uptrend with higher highs (HHs) and higher lows (HLs).
Data from CoinGlass indicated that Ethereum’s future open interest reached a new all-time high of $28.70 billion on Dec. 17.
While most futures traders have targeted long positions throughout November, the current sentiment might be turning momentarily bearish.
If Ethereum Fails to breach and close above $4100 level then can retracement before reversing its trajectory towards $3500.
If Ethereum bulls sustain above $4000 level then further upside to new all-time highs around $5,000 can be seen.
