Ethereum continues to show strength, but the price action has reached a critical stage where both bullish and bearish signals are emerging.
Technical Analysis on the Daily Chart
On the daily timeframe, Ethereum remains inside an ascending wedge pattern, a formation that often signals trend exhaustion. The asset has edged above the midline of its ascending channel, highlighting that bulls still retain control.
However, the RSI has developed a bearish divergence, with higher highs in price failing to match momentum, a warning sign that a pullback could be near. If Ethereum fails to close decisively above the $4,700–$4,800 resistance band, selling pressure may intensify, potentially dragging it back toward the channel’s mid or lower boundaries.
Technical Analysis on the 4-Hour Chart
On the 4-hour chart, Ethereum recently confirmed a Break of Structure (BOS), suggesting an early shift in trend dynamics. It then retraced into a demand zone, where buyers responded aggressively, reaffirming it as a strong decision point.
Since then, ETH has been consolidating between the major swing high near $4,800 and the recent swing low at demand, with order flow tilting toward buyers. If resistance at $4,800 is cleared, a new bullish leg could take shape, but failure to hold demand risks another downside sweep.
On-chain Analysis
Ethereum is consolidating just below its all-time high near $5K, leaving participants uncertain about whether a breakout or a deeper retracement lies ahead. One key metric is the Taker Buy-Sell Ratio, which measures the balance of aggressive market orders.
The 30-day moving average of this ratio has been trending lower, signalling an increase in aggressive selling pressure. This suggests profit-taking and distribution are weighing on Ethereum as it struggles at resistance. Sustained weakness in this metric could pave the way for a deeper correction, with $4K emerging as a critical support level.
However, if the selling is primarily from short-term traders or weak hands, it could represent nothing more than a healthy consolidation phase, ultimately preparing the market for a renewed push higher.
In conclusion, Ethereum’s next decisive move depends on whether bearish pressure escalates from here or if underlying demand absorbs the supply, setting the stage for a breakout beyond ATH.
