Ethereum’s latest attempt to break past its all-time high of $4,800 has been met with selling pressure, leading to a notable correction. Despite this setback, the asset remains supported by key resistance levels and is likely to see continued volatility as the market consolidates. 2. Technical Analysis
A closer look at Ethereum’s price charts reveals a story of both resilience and potential weakness. The Daily Chart shows buyers recently tested the $4,800 level but were met with strong selling pressure, resulting in a decline that pushed the price back into a corrective phase. The 4-Hour chart highlights similar patterns, showcasing a more pronounced rejection at the $4,800 swing high.
Key Considerations:
– Ethereum is currently consolidating within the $4,200 to $4,800 range, which now acts as a critical decision zone. A breakout above the upper boundary would likely fuel a strong rally toward the psychological $5,000 milestone. Conversely, continued sideways action would reinforce this range as the battleground for the next major move.
– The price movements observed suggest a healthy correction. The $4,200 level serves as the primary support zone, while bearish RSI divergence against price further supports the short-term pullback narrative.
– A decisive breakout above $4,800 would confirm bullish continuation and open the door to potentially reaching $5,000 and beyond.
3. Sentiment Analysis
Ethereum’s recent volatility, driven by liquidity-driven moves, is shaping short-term price action. The liquidation heatmap provides valuable insight into where leveraged positions are clustered, highlighting potential areas of price attraction. Over the past week, ETH surged toward the $4,800 region but faced intense selling pressure, resulting in a sharp pullback.
A look at the current market dynamics suggests continued range-bound behavior with clusters of liquidation levels visible above $4,800 and below $4,200. This dynamic implies that ETH is likely to continue gravitating toward these liquidity pools, with both sides serving as magnets for price action. A breakout beyond either threshold is expected to trigger a liquidation cascade, driving the market in a new direction. However, traders should remain cautious of false breakouts, as liquidity hunts are likely to persist until a decisive trend structure emerges.