Ethereum continues to showcase strong market demand, reclaiming important resistance levels. However, current price movements may face resistance in the coming weeks.
Daily ETH Chart Analysis
Ethereum (ETH) is rallying, reclaiming the significant psychological resistance at $3.5K. This indicates strong demand and increasing investor confidence.
A potential catalyst for further growth could be the approaching crossover of the 100-day moving average above the 200-day MA, signaling a possible ‘golden cross’ — a classic long-term bullish indicator. However, price is now approaching a key supply zone in the $3.6K - $3.7K range, likely leading to short-term headwinds and potential consolidation.
4-Hour ETH Chart Analysis
On the 4-hour chart, ETH shows impressive strength, slicing through multiple resistance levels. The recent rally above the $3.5K zone reflects intensified buying pressure; however, price now finds itself between the $3.5K support and the $3.8K resistance.
This narrow range suggests a phase of consolidation. A short-term retracement toward the $3.5K level is anticipated; if buyers defend this level, it could act as a launchpad for a breakout beyond the upper boundary of the current range.
On-Chain Analysis and Trading Volumes
The Ethereum Futures Volume Bubble Map reveals signs of market overheating, especially in highlighted areas with high trading volumes. This indicates a sharp increase in market enthusiasm and rallies initiated by speculative traders. However, spot trading volumes remain relatively stable, indicating caution among spot buyers.
This raises the question: Can the current futures-driven momentum attract broader participation in the spot market? If spot buyers begin entering significantly, it may validate the recent rally and expand it across the altcoin space.
Current trends in Ethereum indicate strong investor interest and powerful technical signals, but the need for consolidation and caution from spot buyers suggests that the coming weeks could be critical.
