Ethereum Shatters Records With New ATH—But RSI Divergence Threatens $5,000 Breakthrough
Ethereum just blasted through its previous all-time high—only to hit a wall of technical resistance that's got traders sweating.
The RSI Divergence Dilemma
That textbook bearish divergence on the daily chart screams overbought. Momentum's fading even as price climbs—classic warning sign that this rally might need to catch its breath before charging toward $5,000.
Market Psychology at Play
Everyone's watching that magic number like hawks. Break it, and euphoria takes over. Fail, and well—guess those 'smart money' fund managers will suddenly remember they 'always had concerns about volatility.'
Next moves? Watch for a healthy pullback. Because in crypto, the only thing more predictable than a pump is a herd of analysts claiming they predicted the dump.
Ethereum Breaks Record With Weekly Close Above $4,600
GrayWolf6, in a recent post on X, highlighted that ETH has achieved a significant milestone by closing the weekly candle above $4,600. This level had previously marked the highest weekly close, and as anticipated, ETH went on to set a new all-time high (ATH) last week.
Currently, ETH is trading within the upper resistance zone of the $3,900–$4,800 range. This region is historically challenging and could invite selling pressure as traders look to secure profits.
GrayWolf6 noted that his outlook is for ETH to attempt a push beyond the $5,000 mark. Such a move WOULD not only confirm strong bullish momentum but also open the door for further upside targets as buyers maintain control of the trend.
He added that the $5,100 level is especially critical to watch in the coming days. GrayWolf6 concluded by stating that he will be monitoring developments closely throughout the week and sharing updates accordingly.
Choppy Price Action Likely As Market Tests Momentum
Another analyst, Cryptonite, recently shared an update highlighting the mixed signals currently appearing on Ethereum’s chart. He noted that the chart is presenting a rare and somewhat messy pattern, where price has been making higher highs while the RSI has printed lower highs, a classically bearish divergence. However, the RSI is also showing higher lows, which signals that the downside momentum may not be as strong as it initially appears to be.
This unusual setup has left ETH in a rather complex position. Cryptonite explained that as long as the RSI maintains these higher lows, the long-term outlook remains favorable for the bulls, despite the short-term volatility. This makes sense given that ETH is currently trading around its all-time high levels, a zone that naturally attracts both profit-taking and renewed buying interest, leading to unpredictable price swings.
Another factor worth watching, according to Cryptonite, is trading volume. Despite ETH recording higher highs in price, volume has been declining, which could be a warning sign of weakening momentum. Until stronger participation returns, ETH’s next major MOVE may remain uncertain, with volatility likely to dominate in the short term.
