TradeCityPro | ETH : Testing Key Levels with Volume Weakness

17 Ara

👋 Welcome to TradeCityPro!
In this analysis, I’ll review Ethereum (ETH) across the daily and 4-hour timeframes. For a deeper perspective and additional timeframes, you can check my previous analysis linked in the Related Publications section.

📅 Daily Timeframe: Retesting the 4029 Zone
On the daily timeframe, ETH is respecting a weekly ascending trendline that has shown significant reactions. In the Accumulation Zone between 2199 and 2760, the price responded three times, leading to a breakout and a strong upward movement toward the 3547 resistance.

🚀 The 3547 resistance initially seemed strong, but given the market’s high momentum, it was broken on the first attempt, allowing the price to test the critical 4029 resistance.

✅ The 4029 level is extremely significant, as a breakout here could initiate Ethereum’s primary bullish trend, with the next target being the ATH resistance at 4833. Higher targets were detailed in my previous analysis, accessible in the Related Publications.

🔍 However, 4029 is also a major supply zone, where many long-term ETH holders might take profits, increasing the likelihood of a correction. ETH already retraced once to 3547, which now acts as a minor support. In case of a deeper pullback, the price could revisit the Support Zone marked on the chart.

🧩 Signs of a possible correction include the RSI breaking below 50, decreasing buying volume, and increasing selling pressure.

📉 If the Support Zone fails, the bullish momentum will temporarily fade, invalidating the current uptrend. In this case, the weekly ascending trendline becomes the first key support, followed by 2199, a critical demand zone and the “last line of defense” for ETH.

⏳ 4-Hour Timeframe: Moving in an Ascending Channel with Declining Volume
On the 4-hour timeframe, ETH is moving within an ascending channel, which is clearly visible across many charts. Currently, the price is interacting with the midline of this channel.

🔽 Following the first test of the 4059 resistance, market volume has been decreasing, and ETH has been ranging between 3547 and 4059. Additionally, the RSI is showing a bearish divergence, with a trigger confirmation if the RSI drops below 50.

🔑 These signs of trend weakness could lead to a correction or even a potential trend reversal. However, it’s important to note that in High Wave Cycles (HWC), it’s natural to see temporary weaknesses in the Low Wave Cycle (LWC) or Medium Wave Cycle (MWC), as the overall trend remains bullish.

✨ Given this context, I still view ETH’s trend as bullish. While the 4-hour timeframe shows slight weakness, this hasn’t significantly impacted the broader market momentum. A breakout above 4059 would validate a long position.

💥 On the downside, if a correction occurs, the support zones highlighted in the daily timeframe remain key areas for potential reversals. If the correction is shallow, the channel’s lower boundary will act as a strong support.



📝 Final Thoughts

This analysis reflects our opinions and is not financial advice.

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