Ethereum News Today: Ether Price Near $4,500 Resistance Amid Bullish Volume and Bearish RSI Signals

Ether (ETH) on-chain data indicates a potential rally to $4,500, supported by strong market momentum and volume dynamics, although bearish RSI divergences suggest a short-term pullback is possible. The +1σ active realized price band, currently near $4,500, represents a historically significant resistance level that has acted as a price ceiling during past bull cycles, including the March 2024 peak and the 2020–2021 bull market. A sustained breakout above this level could trigger a rapid price surge, but it also comes with increased volatility risks [1].

Ethereum’s perpetual futures volume has recently surpassed that of Bitcoin for the first time since 2022, indicating a shift in trader focus toward ETH. This volume dominance reflects growing confidence in Ethereum’s market potential. A well-known trader, Byzantine General, noted the bullish sentiment, describing the current market as one where “ETH refuses to print any significant correction… It’s looking like a just fing send it moment.” Liquidation data also supports this sentiment, showing a dense cluster of short liquidations just above $4,000. A decisive move beyond this level could trigger up to $930 million in short liquidations, potentially pushing ETH toward the $4,500 target [1].

However, bearish RSI divergences on four-hour and daily charts indicate weakening buying pressure, despite ETH hitting local highs. The relative strength index has not confirmed these price movements, a classic sign of potential short-term exhaustion. This divergence pattern is similar to past market tops and suggests a possible correction if ETH fails to break above $4,000 with strong volume. The daily chart shows a persistent bearish divergence since ETH surpassed $3,500, signaling caution among traders [1].

If a correction occurs, immediate support is expected just below $3,700, where a narrow fair value gap exists. A deeper pullback could test the longer-term FVG between $3,200 and $3,300, potentially leading to a bearish structural break [1].

For traders, it is crucial to monitor volume and RSI signals closely. A clean breakout above $4,000 could trigger significant short liquidations and a rapid price move toward $4,500. Conversely, a failure to maintain momentum may result in a short-term correction toward key support levels [1].

The key takeaway is that while the data points to a strong rally potential toward $4,500, driven by shifting market interest and liquidation dynamics, bearish RSI signals introduce caution. Traders must balance optimism with technical analysis to navigate the upcoming price movements effectively [1].

Source: [1] ETH Onchain Data Suggests Potential Rally to $4,500 Amid Short-Term Bearish RSI Divergence (https://en.coinotag.com/eth-onchain-data-suggests-potential-rally-to-4500-amid-short-term-bearish-rsi-divergence/)