Why did the market fall?
Several reasons are intertwined:
1. Liquidity thirst / macroeconomic adjustment
Crypto markets are still heavily influenced by what the Federal Reserve (or central banks) of the U.S. does and by inflation data. If the data is not as bad as expected, rate cuts are postponed, which puts downward pressure on risk assets like crypto.
2. Technical correction after rises
It is natural that when there are strong rises or overly optimistic expectations, many take profits, those who were leveraged react poorly, and a 'normal' correction occurs.
3. Market sentiment / investment rotation
Sometimes large players (whales, institutional) rotate their money from one asset to another, whether within the crypto ecosystem (from altcoins to Bitcoin or vice versa), or towards less risky investments. When this happens, it can generate chain selling from those who follow the trend. There are also regulatory news, concerns about fiscal or monetary policies.
4. Technical resistance / psychological levels
Ethereum has zones that for traders are “pain points” or resistance: levels where people expected it to rise, so there are sell orders at those points, making it difficult to advance further if there is no strong catalyst. When it does not exceed those resistances, there are pullbacks.
---
And has Ethereum already reached the level of “safe support” of ~$4,700? Is it a good sign?
This is where technical and probabilistic aspects come in. According to what I have read:
It is said that $4,700 is a key level for Ethereum. If it manages to stay above that with demand, it could serve as firm support.
Some analysts are seeing that ETH has already “consolidated” near that level, which means there have been purchases that prevent it from continuing to fall, at least for now.
But they also warn: if it loses that level, it could fall to lower levels like ~$4,600, ~$4,550, or even ~$4,400.
---
My conclusion: is it a good decision to bet on ETH here?
If your horizon is medium to long term, and you believe that the macro data will not twist too much (inflation, rates, regulations), then yes, 4,700 could be a good entry point.
But it is not guaranteed to be “safe”. There is a risk of it falling a bit more before stabilizing.
If you are going to enter or are already inside, it might make sense to set a stop-loss in case it loses ~$4,700 to limit losses.
