Ethereum’s price is testing the top of its parallel channel after breaking a horizontal resistance zone, historically a strong reversal level.
The RSI stands at 70.64, showing overbought conditions but forming a potential bearish divergence while price presses higher near resistance.
Stochastic RSI recently formed a bullish cross, indicating short-term upward momentum that could continue if confirmed by a strong breakout.
Ethereum (ETH) is trading near the upper boundary of a long-standing parallel ascending channel, a zone that has historically acted as strong resistance. The current setup presents a pivotal moment for the cryptocurrency’s near-term direction.
Price Action Near Upper Channel Resistance
According to market commentary from @Crypflow, ETH has reached the top of its parallel channel after breaking through a horizontal resistance zone. This level has been a repeated turning point, with multiple past rejections visible on the chart. The recent move saw ETH climb toward this line but show hesitation, marked by a minor pullback.
The horizontal resistance band just below the channel remains an important battleground for buyers and sellers. Price holding above this zone may provide short-term support if a rejection occurs. Conversely, a decisive move above the channel could shift the trend’s momentum.
Mixed Momentum Signals
The Relative Strength Index (RSI) is currently at 70.64, hovering at the overbought threshold but with room to move higher. However, a potential bearish divergence is forming, as ETH’s price is pressing higher while the RSI fails to match those highs. Historically, such divergences have preceded pullbacks or consolidation periods.
The Stochastic RSI shows a recent bullish cross, where the blue line moved above the yellow. This is generally interpreted as a sign of short-term upward momentum, which, if confirmed by price action, could sustain further gains.
Breakout or Rejection Scenario
The area ETH currently tests serves as a make-or-break zone. Past movements suggest caution, as price has frequently reversed at this point. For a bullish continuation, ETH must achieve a clean breakout above the channel with strong trading volume. Such a move could invalidate the current bearish divergence and push RSI levels higher, opening the path toward a potential new all-time high.
Until such confirmation appears, market participants are closely monitoring whether momentum can maintain its strength or if a reversal toward lower support levels is imminent. This moment remains critical for Ethereum’s short-term trajectory.
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