Ethereum (ETH) continues to show resilience despite failing to break the $4,000 resistance level, currently hovering around $3,500. If the $3,500 level is broken, the market could quickly move towards the $3,000 support zone. The price's reaction to the $3,500 level will likely determine the market's direction in the coming months.

On the 4-hour chart, the price has been forming a classical chart pattern around the $3,500 level, with the direction of the potential breakout from this pattern likely to dictate the upcoming move. The Relative Strength Index (RSI) oscillates around 50%, indicating a balance in momentum.

Ethereum's open interest, the value of all futures contracts, has spiked from around $7 billion to almost $13 billion since ETH's price recovered from the $3,000 support level. This increase likely contributed to the recent recovery, as over-leveraged positions were liquidated, applying selling pressure on the market. However, further downsides are possible given the open interest is still significantly higher than in March when ETH was trading at similar prices.