Ethereum is currently trading near $4,300, testing the critical support levels within its long-term ascending channel. The market has reached a pivotal moment with upcoming sessions likely to determine if Ethereum stabilizes for another climb or descends into a deeper correction. 📈 📉
Analysis by Shayan, CryptoPotato
Technical Indicators:
– **Daily Chart:** Ethereum remains within its ascending channel but momentum is waning as the RSI shows bearish divergence, indicating fading bullish strength despite higher price levels.
– **4-Hour Chart:** Short-term weakness is more prominent. The ascending yellow trendline which guided ETH’s rally has been broken, showing buyers have lost momentum and are consolidating in a tight range around $4,200 – the key support zone that could fuel another push to $5K or trigger a deeper correction.
Sentiment Analysis:
– **Funding Rates:** Funding rates across exchanges show divergence from Ethereum’s price action, signaling less willingness for aggressive leveraged long positions despite recent highs. This suggests waning speculative enthusiasm in derivatives market despite spot price strength. 💰 – **Historical Patterns:** These divergences historically precede exhaustion in bullish momentum, often followed by sideways consolidation or pullbacks before a potential move.
**Conclusion:** The coming sessions will be crucial for Ethereum. A strong close above $4,500 could signal further upside. However, if the bulls fail to hold this level and break below $4,200, a deeper correction could follow.