The latest price evaluation of Ethereum shows a slight decline after reaching the $4,000 resistance level. Despite the short-term correction, on-chain data leans bullish.
Technical Analysis
ETH's daily chart remains structurally bullish despite the recent retracement. After breaking above the $2,800 resistance level, the price surged past the $3,500 resistance zone, eventually stalling near $4,000. This area aligns with prior swing highs and is acting as strong resistance. The asset has now retraced back toward the broken resistance at $3,500, which is being retested as support. The RSI has also cooled from overbought levels and is currently hovering near 56, allowing room for another move up if buyers step in.
Short-Term Trends
The 4-hour chart shows ETH breaking down from a rising wedge formation, a pattern often associated with exhaustion after a prolonged rally. After multiple failed attempts to break above $4,000, ETH rolled over and fell toward $3,350 before finding short-term support. This coincided with a bearish divergence on RSI, signaling weakening momentum before the drop. Currently, ETH is stuck in a short-term range between $3,500 and $3,750. A clean break above this range could trigger another move toward the $4,000 region.
Onchain Data Analysis
The Ethereum Exchange Supply Ratio continues to trend lower, hitting a fresh multi-year low at 0.13. This metric measures the proportion of ETH held on exchanges relative to the total supply. A falling ratio indicates that less ETH is being held on centralized exchanges, suggesting that holders are moving their coins into cold wallets. This trend has been in place for a few years and aligns with Ethereum’s broader shift toward becoming a yield-bearing asset. With less ETH available on exchanges, even moderate demand could trigger sharp price movements to the upside.
In conclusion, despite the recent correction in the Ethereum market, the current state of charts and analytical data suggest a potential bullish scenario for further price growth. Investors appear to be acumulating Ethereum, which may contribute to future price increases.
