Ethereum is showcasing resilience, bouncing back after testing the critical $3,500 support zone. As momentum builds, ETH appears primed to challenge the significant $4,000 resistance level. However, periodic consolidations within the $3,500 to $4,000 range are likely as the market adjusts to recent gains.
๐๐ซ๐ข๐๐ ๐๐๐ซ๐๐จ๐ซ๐ฆ๐๐ง๐๐ ๐๐ง๐๐ฅ๐ฒ๐ฌ๐ข๐ฌ
Daily Chart Overview:
Ethereum recently surged above the $3,500 threshold, marking a crucial breakout. However, the subsequent dip in bullish momentum led to a retracement, bringing ETH back to its support level. This pullback sparked renewed buying interest, resulting in a modest rebound, which signals a continued bullish sentiment.
Despite this positive outlook, the Relative Strength Index (RSI) reveals a bearish divergence, hinting at waning bullish momentum. This suggests that Ethereum may experience a consolidation phase before making a decisive move toward the $4,000 resistance. As the price edges closer to this psychological barrier, periods of reduced volatility and short-term corrections are anticipated.
๐-๐๐จ๐ฎ๐ซ ๐๐ก๐๐ซ๐ญ ๐๐ฒ๐ง๐๐ฆ๐ข๐๐ฌ:๐ฏ
Ethereumโs performance on the 4-hour chart reflects sustained bullish strength, particularly after breaking out of an ascending wedge and reclaiming the $3,500 level. The subsequent rebound reinforces the uptrend, with the $4,000 target remaining in sight.
However, bearish divergence in the RSI indicates increasing selling pressure, suggesting a potential slowdown in momentum. In the near term, Ethereum may experience sideway movements and minor corrections within the $3,500โ$4,000 range as the market consolidates before any significant price surge.
๐๐ง๐๐ก๐๐ข๐ง ๐๐ง๐ฌ๐ข๐ ๐ก๐ญ๐ฌ๐จ
Ethereumโs rebound from $3,500 highlights its bullish potential, but on-chain metrics signal caution. The open interest in Ethereum's perpetual futures market has hit an all-time high, reflecting unprecedented speculative activity. This rise in leveraged positions, without a corresponding new price peak, suggests elevated volatility risks.
A sudden price correction or consolidation could lead to a cascade of liquidations, causing rapid declines. This divergence between price action and derivatives activity underscores the need for cautious optimism as Ethereum approaches key resistance levels.
