Ethereum (ETH) Rally Stalls: What’s Next in This Price Analysis?
Ethereum's momentum hits a wall—traders scramble for direction as the rally falters.
Technical Breakdown: Where ETH Stands Now
Support levels get tested while resistance holds firm. The charts don't lie—consolidation patterns emerge after that aggressive climb. Volume drops tell the real story: uncertainty creeps back into the market.
Market Sentiment: Bullish Fatigue or Temporary Pause?
Whales hold steady but retail flows weaken. Derivative data shows leveraged longs getting nervous—funding rates normalize as speculation cools. Classic profit-taking behavior or something deeper? The options market hints at protection buying rising.
Macro Factors: Beyond the Charts
Network upgrades continue but gas fees remain a nagging concern. Institutional adoption stories clash with regulatory whispers—because nothing says 'mature asset class' like politicians suddenly discovering they have opinions about code.
Next Moves: Key Levels to Watch
Break below critical support invites a deeper retracement. Hold and consolidate? That sets up the next leg up. Traders eye Bitcoin's momentum for clues—because in crypto, everything starts and ends with the king.
Either way, the market's never boring—just ask your portfolio manager who still thinks 'blockchain' is something you buy at Home Depot.
$ETH breaking trend
Source: TradingView
The daily chart for the $ETH price shows that a breakdown of the ascending trendline, active throughout August, may be taking place. Of course, the day is not done yet, and there is the possibility that the price can still return above the trendline should the crypto market receive some kind of boost. The US stock market opening in a few hours could even supply that boost.
That said, if the price does continue to break down, there is major support below at $4,000, which bulls WOULD expect to hold. Conversely, if the price breaks back up, the new all-time high is not very far overhead at $4,950.
$ETH potential double top?
Source: TradingView
Zooming out into the weekly time frame a couple of nagging concerns do show themselves, although as mentioned already, if the crypto market sentiment does change, $ETH could be back to all-time highs in an instant.
Back to the bear case. This weekly red candle is enveloping the previous one. Also, if this were a top for $ETH, it would be a double top with the 2021 high forming the other top. A double top could certainly lead to a major breakdown.
At the bottom of the chart, the Stochastic RSI indicators are bouncing along the top of their range. How much longer can they continue to do this? There have only been two other periods for the entire history of $ETH when the indicators have generally stayed above the 80.00 level for longer.
ETH/BTC rejection from descending trendline
Source: TradingView
Finally, one needs to compare $ETH to $BTC (ETH/BTC). Here it can be seen that $ETH is being rejected from the long-time descending trendline. Also, the good horizontal support at 0.04 looks as though it might fail.
Once again, the Stochastic RSI indicators are bunching at the top of their range. It really does look as though a fall back down to earth is probably going to take place from here.
Where will this take the $ETH price? $3,500 or $3,000 are major support levels. That’s not to say that the bull market will be finished for $ETH, but it does put the possibility of a 30% to 40% bull market correction on the table.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
