Ether is hovering around $4,000 with weak futures demand and declining onchain activity. Analysts warn of a drop to $3,500 if support is not reclaimed soon. The lack of sustained bullish sentiment is reflected in low futures premiums and outflows from US-based ETFs. Ethereum network fees have also decreased, contributing to the bearish trend.

Despite attempts at recovery, Ether struggles to stay above $4,000, prompting concerns about further downside. Analysts predict a potential drop to $3,500 if $3,800 support is lost. Reclaiming $4,000 could pave the way for a push towards $4,200 and $4,500, with all-time highs above $5,000 in sight. Traders remain cautious amidst market uncertainty.

Analysts suggest a pullback to $3,300 could be a healthy correction within the uptrend, emphasizing the importance of defending key support levels. Maintaining the $3,800-$4,200 region is crucial for Ether’s bullish momentum. The crypto market’s direction remains uncertain, with potential for further downside if critical levels are breached.

Read more at Cointelegraph: Bear Trap or $3,500? Ethereum Analysts Cast Doubt on ETH price Recovery