💥💥💥Ethereum $4,400: Are these divergences a signal for a rebound or a selling trap?
Ethereum is currently at a critical juncture, with prices around $4,206, facing resistance at $4,400, a level that previously triggered price reversals.
Long-term on-chain signals are bullish, with an ascent expected in early 2025, accompanied by capital inflows, implying a willingness to sell, while the divergence between bulls and bears may intensify volatility.
On the daily chart, ETH tests $4,400, with support around $4,000. The RSI is about 71, entering the overbought region, indicating potential profit-taking; Fibonacci extension shows $4,302 as a recent target, and if momentum continues, the next bullish target is $4,886.
The futures market is overheated with leverage; although it may accelerate the upward trend, a reversal in sentiment could trigger significant liquidations. On August 10, net outflows from exchanges were $245.57 million, reflecting investors' inclination towards self-custody and reducing selling pressure, although Binance still has token inflows, indicating potential selling activity.
There is a dense liquidation cluster between $4,300 and $4,400; a breakout could accelerate the rise, while failure may lead to a pullback to $4,000.
Overall, despite being overbought and the existence of leverage risks, ongoing capital outflows, declining ESR, and strong accumulation may assist in breaking through $4,400. If the bulls exert strength, a rise to $4,800 is expected.
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