Ethereum’s daily RSI reached 87.84, the cycle’s peak, with no bearish divergence as price continues to push toward $4,200 resistance.
ETH surged from $2,600 to $3,795 with strong daily closes and increasing volume, showing a well-formed bullish structure.
Wallets that bought around $2,520 took profits but still hold 2M ETH, while new buyers continue absorbing available market supply
Ethereum (ETH) has continued its upward movement, nearing previous cycle highs while momentum indicators reach extreme levels rarely seen in recent months.
RSI Reaches Cycle Peak While Price Pushes Higher
Daan Crypto Trades noted that Ethereum’s Relative Strength Index (RSI) on the daily chart has climbed to 87.84—the highest level recorded in this market cycle. This reading suggests overheated conditions, although it doesn’t necessarily indicate a trend reversal. Traders often view such RSI levels as potential signals to reduce risk or wait for better entry points.
https://twitter.com/DaanCrypto/status/1947242128360267843
The analyst emphasized that while he is not selling spot holdings, he is exercising caution with new long positions. This approach reflects a broader sentiment where traders prefer to let the market cool slightly before making fresh entries. Historically, RSI can remain high even during new price highs, and divergence may not appear immediately.
ETH Approaches Resistance Zone Amid Strong Momentum
Ethereum’s price climbed to $3,860.26 on Binance before settling at $3,697.49 as of writing. The rally began from below $2,600, advancing rapidly with consistent daily gains. Price has now entered a former consolidation range between $3,000 and $4,200, with strong buying interest confirmed by increasing trading volume.
If ETH surpasses the area of resistance at $4,098.94–$4,200 that had earlier capped price action previously in 2024, then it would be a sign of further continuation of the overall uptrend. Daily candles continue closing higher, maintaining the pattern of higher highs and higher lows.. This reflects sustained market strength.
Cost Basis Heatmap Shows Strategic Holding Patterns
Glassnode data shows that wallets that accumulated Ethereum around $2,520 have begun to take profits. This is visible in the fading intensity of the red band on the cost basis heatmap since July 1. However, these wallets still hold close to 2 million ETH.
https://twitter.com/glassnode/status/1947554957428687222
This behavior reflects confidence among holders expecting further gains. While some chose to secure profits, others appear willing to retain exposure. New demand continues to absorb available supply, supporting the ongoing price rise. Ethereum also posted a weekly gain of over 24%, with daily volume exceeding $54 billion.
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