Ethereum continues to hold its bullish structure and trades just below the key $4,100 level. After a strong multi-week gathering, the assets show signs of slowing momentum, but they still maintain a higher framework of breakout structure.
With short liquidation still surges and there are no signs of aggressive profits yet, the Bulls are trying to push higher, but the risk of local pullbacks is increasing.
Technical Analysis
Shayan Market
Daily Charts
On the daily charts, ETH is consolidating its previous highs at $4,100 after a clean breakout above the $2,800 and $3,300 resistance levels. The $3,300 region previously served as a supply zone, but is now inverted to support.
The 100- and 200-day moving averages have just completed a golden cross of around $2,600, which strengthens the bullish bias in the macro. However, RSI is in the territory that was acquired and has hovered beyond 77. This suggests that the assets may need a short-term cooldown before they lift another leg.
If prices are pulled back from here, the initial area of interest will remain in the $3,300 zone for potential retests. As long as ETH is above that level, buyers are still in control. However, losing that area opens up a deeper correction to the $2,800 area with a moving average nearby. Overall, daily structures remain bullish, but signs of fatigue are manifesting.
4-hour chart
On the 4H chart, Ethereum is trading within the upward channel, with prices repeatedly testing the cap and failing to continue higher. This pattern can often lead to failure, especially when paired with RSIs below 60. Currently under 60. Still, there is no clean disabling of uptrends yet. After finding support in the $3,700 support zone, assets are rising again towards a higher trendline in the pattern.
For the Bulls, breakouts and higher channel boundaries confirmed above the $4,000 level could open doors towards new highs. However, if the channel fails, the $3,500 level will serve as your first important support. As long as that level applies, the trend is simply cooled. However, a move below $3,500 could shift momentum to the negative side and create more sales pressure.
Emotional analysis
Ethereum’s short liquidation
The emotions are still bullish, but some signs suggest that a pause may come. Ethereum’s short liquidation has skyrocketed on a massive scale in recent weeks. This shows that aggressive shorts are being wiped out. This often marks the short term top as liquidity diminishes above. At this point there are fewer shorts left to settle, so the further advantage will require actual spot demand.
Overall, the buyers are still in control, but there is likely a simple short aperture behind us, and Ethereum may need a reset before continuing higher.