Ethereum finally shook a few weeks of sideways and launched a strong rally. This asset is currently in the critical resistance band that determines whether this breakout extends to a continuation of a larger trend or fades to another integration.
Technical Analysis
By Shayan
Daily Charts
On the daily charts, Ethereum continues to respect a wide range of upward channels, with the latest surges able to transport prices directly to the $47,000-$4.8,000 supply zone. This area previously acted as a ceiling, and the overlap with the upper channel boundary amplifies its importance.
Daily closures over this barrier will significantly increase the likelihood of retesting the $5K threshold. However, rejection here could potentially pull the cooling phase back towards the mid-channel zone from around $4.4k to around $4.2,000. This is an area reinforced by trendline structures and key support from bulls.
4-hour chart
On the four-hour chart, Ethereum escaped the wedge layer in an impulsive rally and headed straight to the $4.7k resistance band. Momentum remains with buyers, but the current stalling emphasizes the presence of short-term supply.
From here, Ethereum faces a clear intersection. A critical breakout above $4.8k could extend this leg high to 5K, but failing to absorb supply at this level will attract you to $4.4K and test demand to validate the breakout.
Emotional analysis
By Shayan
Ethereum's latest upside was fueled by sharp short slants as clustered leveraged shorts were cleared, as they surpassed local highs. This liquidation cascade created a rapid upward momentum, washing away sellers and clearing liquidity from upside down.
However, the squeeze also left a dense fluidity pocket in the $4.5K-4.4K range just below its recent lows. This zone is important for monitoring. If Ethereum stalls in the current resistance cluster, prices will be pulled back to this liquidity pool, allowing potential demand to be readjusted and tested.
In short, Ethereum's breakout unfolded accurately as expected. The short pressure gets caught up in a strong push, but the sustainability of this move depends on the buyer's ability to defend a level of regeneration. The next session will decide whether Ethereum will integrate the strength of fresh ATH attempts or a boost to absorb fresh fluidity.
