Ethereum (ETH) has seen a strong rally in recent weeks, reaching highs near $4,750, but the momentum appears to be slowing. Analysts now warn that ETH could face a short-term correction, with key support levels under scrutiny as bulls and bears battle for control.
ETH Faces Resistance Around $4,750
Ethereum’s price extended gains above $4,600 and $4,620, testing the $4,750 resistance zone before sellers stepped in. On the hourly chart, ETH formed a high of $4,759 before retracing. The pullback took the price below $4,620 and $4,600, signaling a pause in bullish momentum.
Technical indicators suggest a weakening short-term trend. ETH is now trading below the 100-hourly Simple Moving Average, and a break below a key bullish trend line with support at $4,560 has raised concerns of further downside. The immediate support zones to watch are $4,440 and $4,420. A sustained breach of these levels could push Ethereum toward $4,320 or even $4,250.
Resistance Levels to Watch
On the upside, Ethereum faces hurdles around $4,520, which aligns with the 23.6% Fibonacci retracement of the recent decline from $4,759 to $4,435. Above that, the next key resistance is $4,550, followed by $4,600, which corresponds to the 50% Fib retracement.
A break above $4,600 could reignite bullish momentum, potentially propelling ETH toward $4,650, $4,720, and even retesting the $4,750 zone in the near term. Traders will be closely watching price behavior around these levels to gauge whether bulls can regain control or if selling pressure will dominate.
Potential Downside Scenarios
If Ethereum fails to overcome resistance at $4,600, the short-term correction may deepen. Initial support lies at $4,440, followed by a critical zone at $4,420. Should ETH fall below $4,420, the next targets for bears are $4,320 and $4,250.
A sustained move under $4,250 could signal a more significant correction, with the next major support at $4,150. Analysts stress that these levels are crucial for maintaining ETH’s bullish outlook. Breaking below these zones could lead to further consolidation before a potential rebound.
Technical Indicators Highlight Caution
Momentum indicators reflect a cooling trend. Daily Relative Strength Index (RSI) readings have dropped below neutral levels, while short-term moving averages are showing signs of flattening. These factors suggest that bulls may need to regroup before attempting another push toward $4,750.
On-chain data supports this view. Ethereum’s exchange reserves have been steadily declining, signaling that long-term holders are not actively selling. However, the recent correction indicates that short-term traders are taking profits, particularly near key resistance levels.
Market Context and Broader Crypto Trends
Ethereum’s price action mirrors broader crypto market movements. Bitcoin has recently surged toward new highs, but ETH’s inability to extend gains above $4,750 suggests that capital may be shifting between BTC and ETH, with traders weighing risk and liquidity.
Experts note that ETH’s short-term pullback is healthy for the market, potentially allowing accumulation near strong support zones. Historically, corrections after significant rallies create more sustainable growth, especially when driven by technical and on-chain factors rather than purely speculative moves.
Key Takeaways for Traders
-
Resistance Zones: Watch $4,520, $4,550, and $4,600 for potential bullish continuation.
-
Support Levels: Keep an eye on $4,440, $4,420, $4,320, and $4,250 for downside defense.
-
Indicators: Daily RSI and moving averages suggest momentum is cooling, indicating a possible short-term correction.
-
Market Sentiment: ETH’s pullback may attract long-term buyers, while short-term traders may capitalize on volatility.
Ethereum’s near-term trajectory depends on how it behaves around these critical levels. A rebound above $4,600 could resume the rally, while failure to hold key support levels might trigger a deeper pullback toward $4,250 or lower.
In conclusion, while Ethereum’s rally has temporarily stalled, the market remains highly dynamic. Traders should monitor resistance and support zones closely, as ETH’s price could either resume upward momentum or enter a deeper corrective phase in the coming sessions.
Post Views: 138