ETH Breakdown Risks Grow Below $4,131

Ethereum's consolidation phase might be coming to an end, and not in a good way. The second-largest crypto is grinding lower as selling pressure builds around the crucial $4,131 support zone. What happens next could determine whether ETH slides into a more serious decline or finds its footing for another rally attempt.

Market Forces at Play

ETH isn't falling in isolation - it's caught up in broader crypto weakness that's been brewing for weeks. Macro uncertainty keeps weighing on risk assets, while profit-taking from earlier highs has created a steady stream of selling pressure. The futures market also shows elevated positioning that could amplify any moves in either direction.

Key Support Levels Under Pressure

• Primary Support: $4,131 - The make-or-break level that's currently being tested
• Secondary Targets: $4,042 (last wick support) and $3,965 (deeper bearish target)
• Recovery Zone: $4,200-$4,270 range needs to be reclaimed to flip the script

The chart shows ETH trapped in a tightening range, but sellers are getting more aggressive. If the $4,131 floor gives way, we're looking at a potential cascade toward $4,042 first, with $3,965 as the next major target if the selling really picks up steam.

The Technical Picture

Right now, the bias is clearly bearish as long as ETH stays under $4,131. Bulls need to reclaim the $4,200 area to even start thinking about a recovery, with $4,270 and $4,326 as the next resistance hurdles above that. But if we see a decisive close below current support, the path of least resistance points lower.

Ethereum's at a crossroads where the next move could set the tone for weeks ahead. A breakdown past $4,131 opens up more downside toward $4,042 and potentially $3,965. On the flip side, any recovery back above $4,200 would give the bulls something to work with. Either way, expect some serious volatility as this setup plays out.