The post Ethereum on the Edge: What Could Happen if ETH Falls Below $4,200? appeared first on Coinpedia Fintech News

Ethereum (ETH) has long been a key player in the crypto market, but recent volatility has investors on edge. Analysts are now closely watching the $4,200 mark, a crucial support level that could determine ETH’s short-term trajectory. A drop below this threshold is believed to trigger a wave of selling, impact market sentiment, and influence DeFi and NFT ecosystems built on Ethereum. Could the ETH price bounce back to $4,500, or are we heading toward a bearish slide toward $3,800?

Massive Liquidation Risk for ETH Holders

Ethereum has been steadily trading above $4,000 for over a week now, displaying the growing strength of the bulls. The latest ETH exchange liquidation map from Coinglass, shared by Ted, highlights a critical setup for price action. The chart reveals a significant concentration of leveraged long positions between $3,945 and $4,200. If Ethereum were to dip into this zone, it could trigger a wave of long liquidations, potentially accelerating a move lower as cascading sell orders amplify downside pressure.

On the other hand, a sizable cluster of short liquidations is forming above $4,500 to $4,700. A sustained breakout above these levels could set off a short squeeze, forcing traders to cover their positions and fueling a rapid price rally.

Overall, the data suggests Ethereum is approaching a high-volatility zone. Price could either sweep lower liquidity levels before rebounding or break higher and liquidate shorts aggressively. Traders should watch the $4,200 support area closely and monitor whether ETH can reclaim and hold above $4,500, which could open the door to a strong bullish continuation.

What’s Next for the ETH Price Rally?

The ETH price had been facing immense resistance at $4000 as the bears prevented it from rising above the range. Meanwhile, after surpassing the resistance, the bulls have firmly held above the levels. This hints towards a potential breakout that could help price to achieve fresh highs. 

Ethereum is consolidating near $4,470 after a strong uptrend that started in May, trading within a well-defined ascending channel. Price action shows ETH holding above its mid-channel support and the 20-day Bollinger Band basis line, signaling sustained bullish momentum. The RSI is hovering near neutral levels around 55, suggesting room for a potential continuation move. Immediate resistance lies at $4,869, while key supports remain at $4,271 and $4,050.

A break above $4,869 could pave the way to $5,000 and the upper channel trendline, whereas a drop below $4,271 could result in a deeper correction toward channel support for the Ethereum (ETH) price rally. 

.article_register_shortcode { padding: 18px 24px; border-radius: 8px; display: flex; align-items: center; margin: 6px 0 22px; border: 1px solid #0052CC4D; background: linear-gradient(90deg, rgba(255, 255, 255, 0.1) 0%, rgba(0, 82, 204, 0.1) 100%); }

.article_register_shortcode .media-body h5 { color: #000000; font-weight: 600; font-size: 20px; line-height: 22px; text-align:left; }

.article_register_shortcode .media-body h5 span { color: #0052CC; }

.article_register_shortcode .media-body p { font-weight: 400; font-size: 14px; line-height: 22px; color: #171717B2; margin-top: 4px; text-align:left; } .article_register_shortcode .media-body{ padding-right: 14px; }

.article_register_shortcode .media-button a { float: right; } .article_register_shortcode .primary-button img{ vertical-align: middle; width: 20px; margin: 0; display: inline-block; }

@media (min-width: 581px) and (max-width: 991px) { .article_register_shortcode .media-body p { margin-bottom: 0; } }

@media (max-width: 580px) { .article_register_shortcode { display: block; padding: 20px; }

.article_register_shortcode img { max-width: 50px; }

.article_register_shortcode .media-body h5 { font-size: 16px; }

.article_register_shortcode .media-body { margin-left: 0px; }

.article_register_shortcode .media-body p { font-size: 13px; line-height: 20px; margin-top: 6px; margin-bottom: 14px; }

.article_register_shortcode .media-button a { float: unset; }

.article_register_shortcode .secondary-button { margin-bottom: 0; } }

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

.subscription-options li { display: none; } .research-report-subscribe{ background-color: #0052CC; padding: 12px 20px; border-radius: 8px; color: #fff; font-weight: 500; font-size: 14px; width: 96%; } .research-report-subscribe img{ vertical-align: sub; margin-right: 2px; }

var templateIds = “6”; var listOfSubscribed = [];

function subscribed_popupmodal(template_id) { var templateId = ‘6’; getAllSubscriberCategoryList([templateId]); var subcribemodal = window.parent.document.getElementById(‘subscribe-modal-design’); if (subcribemodal) { var modalContent = `

Subscribe Now `; subcribemodal.innerHTML = modalContent; } subscribe_unsubscribe_status(template_id); //getAllSubscriberCategoryList(template_id); }

function toggleSubscription(subscription, template_id) { var subscriptionCheckbox = document.getElementById(subscription + ‘_’ + template_id); var li = document.getElementById(subscription + ‘Selected_’ + template_id); if (subscriptionCheckbox.checked) { li.classList.add(‘active’); } else { li.classList.remove(‘active’); } }

function getAllSubscriberCategoryList(getcategoryId) { jQuery.ajax({ url: ‘https://coinpedia.org/wp-admin/admin-ajax.php’, type: ‘GET’, data: { action: ‘subscribe_api_ajax_request’, apiurl: ‘/app/email_newsletter/list’, }, success: function(response) { var result = JSON.parse(response.message);

if (result.status === true) { var idstosubscribed = [] // Populate listOfSubscribed with subscribed category IDs result.message.forEach(listofcategory => {

if (listofcategory.subscribe_status === 1) { if (!listOfSubscribed.includes(listofcategory._id)) {

listOfSubscribed.push(listofcategory._id); }

if (!idstosubscribed.includes(listofcategory.news_cp_category_row_id)) { idstosubscribed.push(listofcategory.news_cp_category_row_id); } } });

idstosubscribed.forEach(id => { var subscribeButton = document.getElementById(‘subscribe_’ + id); var unsubscribeButton = document.getElementById(‘unsubscribe_’ + id);

if (subscribeButton && unsubscribeButton) { subscribeButton.style.display = ‘none’; unsubscribeButton.style.display = ‘block’; var showDownloadReport = document.getElementById(‘download_report’);

if (showDownloadReport) { showDownloadReport.style.display = ‘block’; } } }); }

}, error: function(xhr, status, error) { console.error(‘Error:’, error); } }); }

function subscribe_unsubscribe_status(getcategoryId) { var elementTounsubscribe = parent.document.getElementById(‘unsubscribe_’ + getcategoryId); var elementTosubscribe = parent.document.getElementById(‘subscribe_’ + getcategoryId); jQuery.ajax({ url: ‘https://coinpedia.org/wp-admin/admin-ajax.php’, type: ‘POST’, data: { action: ‘subscribe_api_ajax_request’, apiurl: ‘/app/email_newsletter/list?category_row_id=’ + getcategoryId, }, success: function(response) { var result = JSON.parse(response.message); if (result.status === true) { parent.jQuery(‘.skeliton-loader-block’).hide(); var hasSubscribeStatusOne = false; result.message.forEach(subscribeStatus => { if (listOfSubscribed.includes(subscribeStatus._id) && subscribeStatus.subscribe_status === 1) { hasSubscribeStatusOne = true; } if (subscribeStatus.notification_type === 3) { parent.document.getElementById(‘monthlySelected_’ + getcategoryId).style.display = ‘block’; parent.document.getElementById(‘monthly_’ + getcategoryId).setAttribute(‘data-id’, subscribeStatus._id); if (subscribeStatus.subscribe_status === 1) { parent.document.getElementById(‘monthly_’ + getcategoryId).checked = true; } } else if (subscribeStatus.notification_type === 2) { parent.document.getElementById(‘weeklySelected_’ + getcategoryId).style.display = ‘block’; parent.document.getElementById(‘weekly_’ + getcategoryId).setAttribute(‘data-id’, subscribeStatus._id); if (subscribeStatus.subscribe_status === 1) { parent.document.getElementById(‘weekly_’ + getcategoryId).checked = true; } } else if (subscribeStatus.notification_type === 1) { parent.document.getElementById(‘dailySelected_’ + getcategoryId).style.display = ‘block’; parent.document.getElementById(‘daily_’ + getcategoryId).setAttribute(‘data-id’, subscribeStatus._id); if (subscribeStatus.subscribe_status === 1) { parent.document.getElementById(‘daily_’ + getcategoryId).checked = true; } } if (subscribeStatus.subscribe_status === 1) { listOfSubscribed.push(subscribeStatus._id); } }); if (hasSubscribeStatusOne) { elementTosubscribe.style.display = ‘none’; elementTounsubscribe.style.display = ‘block’; } else { elementTosubscribe.style.display = ‘block’; elementTounsubscribe.style.display = ‘none’; } } }, error: function(xhr, status, error) { console.error(‘Error:’, error); } }); }

function logSelectedSubscriptions(categoryid) { var unsubscribemodal = document.querySelector(‘.unsubscribed-popup-modal .modal’); var subscribedmodal = document.querySelector(‘.subscribed-popup-modal .modal’); unsubscribemodal.innerHTML=”; subscribedmodal.innerHTML=”; var selectedSubscriptions = []; var storeCheckedId = []; var checkboxes = document.querySelectorAll(‘#subscription-options-‘ + categoryid + ‘ input[type=”checkbox”]’); var errorMessage = document.getElementById(‘error-message-select’);

// Use a Set to handle unique data-ids var uniqueSubscribedIds = new Set(listOfSubscribed);

checkboxes.forEach(function(checkbox) { var dataId = parseInt(checkbox.getAttribute(‘data-id’)); if (checkbox.checked) {

selectedSubscriptions.push(checkbox.id); storeCheckedId.push(dataId); } else {

uniqueSubscribedIds.delete(dataId); // Remove unchecked data-id } });

// Update listOfSubscribed with unique values listOfSubscribed = Array.from(uniqueSubscribedIds);

var selectedSubscriptionsString = selectedSubscriptions.join(‘, ‘); var concatinateSubscribeId = […new Set(storeCheckedId.concat(listOfSubscribed))];

var categoryData = { ‘subscribed_categories’: concatinateSubscribeId };

var requestSubscriberData = { action: ‘handle_dynamic_api_request_with_headers’, security: ‘58952d6b02’,

endpoint: ‘/app/email_newsletter/update_categories’, token: ”, data: categoryData };

jQuery.ajax({ url: ‘https://coinpedia.org/wp-admin/admin-ajax.php’, type: ‘POST’, data: requestSubscriberData, beforeSend: function(xhr) { xhr.setRequestHeader(‘X-Requested-With’, ‘XMLHttpRequest’); }, success: function(response) { try { response = response.data;

if (storeCheckedId.length === 0) { var unsubcribedPopUpmodal =

`; unsubscribemodal.innerHTML = unsubcribedPopUpmodal; document.querySelector(‘#subscribe-modal-design .modal’).style.display = ‘none’; unsubscribemodal.style.display = ‘block’; unsubscribemodal.classList.remove(‘hide’); unsubscribemodal.classList.add(‘show’); document.getElementById(‘subscribe_’ + categoryid).style.display = ‘block’; document.getElementById(‘unsubscribe_’ + categoryid).style.display = ‘none’; var showDownloadReport = document.getElementById(‘download_report’); if (showDownloadReport) { showDownloadReport.style.display = ‘none’; }

FAQs

Could Ethereum price reach $4,500 again?

Yes, if Ethereum holds above $4,200 and breaks through resistance near $4,500, it could rally toward $4,700 or higher, especially if a short squeeze occurs.

How do liquidations affect Ethereum’s price?

Liquidations can amplify price moves. A drop to $4,200 may trigger long liquidations (selling), while a rise above $4,500 could force short liquidations (buying), accelerating momentum.

Is now a good time to buy Ethereum?

With ETH consolidating near $4,470, monitor the $4,200 support. Holding above it may offer an opportunity, but a break below could signal a deeper correction. Always assess risk.