The price performance of Ethereum (ETH) is remarkable, gradually approaching its ATH of $4868. However, market analysts point out that before hitting new highs, ETH may need to undergo a healthy pullback.

Currently, investors and traders are closely watching the key daily support level of $4450. If ETH can hold steady at this position, it will lay the foundation for further upside. However, if the daily close falls below this level, it may signal a short-term trend shift to bearish, providing ETH an opportunity for a pullback to around $4000.

Analysts believe that 4000 USD is an important psychological barrier and technical support level. If ETH can gain strong buying support at this level, it will not only consolidate the previous gains but may also build momentum for the next rally.

Despite potential pullbacks in the short term, the long-term outlook for Ethereum remains generally optimistic. With the ongoing upgrades to the Ethereum network and the expansion of the decentralized finance (DeFi) ecosystem, the fundamentals supporting ETH remain strong.

Investors should closely monitor market trends and manage risks wisely. Whether it is breaking new highs or experiencing a pullback, both may present opportunities for market participants.