Ethereum (ETH) is making headlines as its price approaches the critical $4,500 resistance level. With bullish volume dynamics clashing against bearish RSI signals, traders are on edge—will ETH break through or face a pullback? Here’s what you need to know.
Ethereum News: Key Resistance at $4,500
The +1σ active realized price band near $4,500 has historically acted as a major resistance level. A breakout could trigger a rapid surge, but volatility risks remain high. Key factors driving this move:
- Bullish Volume: ETH perpetual futures volume recently surpassed Bitcoin’s for the first time since 2022.
- Liquidation Clusters: Over $930 million in short liquidations loom above $4,000, which could fuel a rally.
- Historical Context: This level capped previous bull cycles in 2024 and 2020–2021.
Bearish RSI Signals: A Warning Sign?
Despite ETH hitting local highs, the Relative Strength Index (RSI) shows bearish divergence on 4-hour and daily charts. This suggests:
- Weakening buying pressure.
- Potential short-term exhaustion.
- Risk of correction if $4,000 isn’t breached decisively.
Ether Price: What’s Next?
Traders should watch these key levels:
| Scenario | Price Action |
|---|---|
| Breakout above $4,000 | Short squeeze could propel ETH toward $4,500. |
| Rejection at resistance | Support at $3,700 or deeper pullback to $3,200–$3,300. |
Conclusion: Balancing Optimism and Caution
While Ethereum’s bullish momentum is undeniable, RSI divergences hint at a possible correction. Traders must weigh volume trends against technical signals to navigate the next move.
FAQs
1. Why is $4,500 a critical resistance level for Ethereum?
It aligns with the +1σ active realized price band, a historical ceiling in past bull cycles.
2. What does RSI divergence mean for ETH’s price?
It indicates weakening momentum despite price highs, often preceding a pullback.
3. How could short liquidations impact ETH’s rally?
A breakout above $4,000 may trigger $930M+ in liquidations, accelerating upward movement.
4. Where is Ethereum’s immediate support if a correction occurs?
The first key support lies near $3,700, with stronger backing at $3,200–$3,300.
