Ethereum continues to show strength, moving closer to the midline of the ascending channel and currently trading around $4,670. Although the market has maintained a steady recovery since late September, signs of localized depletion are beginning to appear, suggesting the possibility of a short-term pullback before further gains.
technical analysis
Written by Shayan
daily chart
On the daily time frame, ETH remains firmly within an ascending channel structure, supported by the 100-day moving average near $3,900 and the 200-day moving average near $3,000. The price is approaching the $4,800 resistance zone, a key level that has repeatedly capped gains over the past few months.
The RSI has also risen to 62, reflecting healthy momentum, although it has not yet overheated. While a breakout above $4,800 could pave the way for a test of the psychological level above $5,000, failure to sustain current levels could lead to a retest of the lower end of the ascending channel and even the critical $4,000 demand zone, which is crucial for investors to hold to sustain the bull market.
4 hour chart
The 4-hour chart shows an early bearish divergence between price and RSI, indicating momentum is weakening as ETH tests the key $4,700-$4,800 resistance zone. However, a small bullish fair value gap (FVG) has formed around $4,600, which could attract near-term retracement or support before a continuation.
If buyers defend this gap and regain control, the next upside price target remains $4,800. However, a loss of this level could trigger a deeper correction towards $4,200, where the neckline of the strong demand zone and recent inverted head-and-shoulders pattern lies.
On-chain analysis
While Ethereum price has rebounded strongly and looks poised to rise further, on-chain activity tells a slightly different story. Despite rising prices, the number of active addresses has decreased slightly recently. This indicates that there is a short-term disconnect between network participation and market performance.
For this upward trend to continue, active addresses must rise along with price, supporting true user engagement and on-chain demand. The continued decline in activity suggests weakening fundamentals and could make it difficult for ETH to sustain momentum above the $4,700-$4,800 resistance zone.
