Ethereum has reached a significant milestone by breaking the $4,100 level, but concerns about a possible short-term pullback are raised by analysts.
Key Support Levels for Ethereum
Ethereum has recently broken through a major resistance zone between $3,900 and $4,100, closing a three-day candle above this level. This move is considered bullish in the larger trend, supporting continued upside. However, one analyst has warned that the market may see a short-term pullback before further gains.
Warning Signs from Bitcoin Dominance
Bitcoin dominance, which measures the percentage of the crypto market made up by Bitcoin, is holding at around 60.5 percent support. If dominance bounces higher, it could put pressure on altcoins, including Ethereum. Technical signals also hint at a possible bullish divergence in Bitcoin dominance, which could mean short-term weakness for altcoins.
Short-Term Outlook for Ethereum
On Ethereum’s daily chart, a bearish divergence may be forming where price makes higher highs but the RSI (Relative Strength Index) makes lower highs. Similar patterns in the past have led to small pullbacks lasting several days. If a bearish divergence is confirmed, a short-term pullback could bring Ethereum back to retest its new support around $3,900 to $4,100.
Thus, while significant levels have been successfully breached, market participants should closely watch signals that may indicate a short-term correction.
