Ethereum News Today: Ethereum Slides to $4,600 on 121% Volume Spike as Profit-Taking Intensifies

Ethereum’s price has retreated to approximately $4,600 following a failed attempt to hold above its all-time high over the weekend. The decline came amid a dramatic 121% surge in 24-hour trading volume, reaching $62 billion, which analysts widely interpret as a sign of intense profit-taking after the recent ATH [1]. This high-volume pullback suggests traders and investors are locking in gains following a period of strong performance, rather than signaling a fundamental bearish shift in the market [1].

The sharp correction aligns with typical price behavior seen in speculative assets after major milestones. While Ethereum’s price has dipped, it has not broken key support levels, leaving the door open for a potential rebound. Short-term technical indicators, however, show weakening momentum. The Relative Strength Index (RSI) has dropped to 59.78 from levels above 70 earlier in the week, signaling a move into neutral territory and raising the risk of further bearish pressure if it continues to fall [1]. The Moving Average Convergence Divergence (MACD) line is currently at 252.30, barely above the signal line at 250.93, indicating that bullish momentum is fading. A bearish crossover could push the price toward support near $4,400, while a retest of $4,900 resistance would suggest renewed buying interest [1].

Despite the near-term volatility, the long-term technical outlook for Ethereum remains bullish. Analyst Mags has drawn a comparison between Ethereum’s current price action and the 2021 cycle, when ETH surged 211% after breaking its previous all-time high. Using Fibonacci retracement levels as a reference, Mags projects that a similar move could take ETH to $15,650, based on the 3.618 extension level [1]. A more conservative projection using the 1.618 extension level still suggests a potential rally to $7,500 [1].

The market appears to be in a period of consolidation, with both bullish and bearish forces in balance. Investors are watching closely to determine whether Ethereum can stabilize and resume its upward trend or if the current pullback will lead to a more extended correction. Given the high volume and the nature of the price action, it is likely that the dip is part of a broader correction within a larger bullish cycle rather than a reversal of the trend [1].

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[1] [Why Is ETH's Price Down? A 121% Volume Spike Shows Intense Profit-Taking After the ATH](https://coinedition.com/why-is-eths-price-down-a-121-volume-spike-shows-intense-profit-taking-after-the-ath/)