Ethereum may have just temporarily halted its ambitious rise against the $5,000 mark. The second largest cryptocurrency shows signs of sharp inversion candles on the daily chart after weeks of unbroken growth.
Overheated technologies such as RSIs well over 80 are usually indications that assets are being bought significantly, but are consistent with the latest rejection of around $3,800. The volume, which had been steadily increasing throughout the breakout, is also beginning to fade as a classic indicator of waning violent convictions. Now it looks like a U-turn on the top due to its declined volume and overly expanded technology. This is a typical market pattern when speculative buyers run out of firepower.
ETH is at risk of significant revisions as there was no significant integration in the previous assembly phase. The decline to the $3,000 mark corresponding to the psychological threshold and previous zone of resistance is currently the most likely scenario. This level could turn into a battlefield between bulls, wanting to buy a dip that would force Ethereum back into integration range if sales speed up.
From a wider angle, this simply marks the inevitable cooling stage, not the end of the Ethereum Bull Market. The market cycle needs to be suspended, and vertical price actions that do not retrace rarely end well. Traders will need to closely monitor the $3,000-$3,200 range until Ethereum regains its upward momentum.
Failure to retain that zone can lead to deeper corrections, but a clean bounce there validates the next leg. For the time being, hopes for ETH to reach $5,000, at least temporarily.