The $ETH market is showing a familiar behavior, a slow upward crawl from 4065 to 4188, almost like it’s stretching before a retracement. This level is not just random movement; it sits around a key support turned resistance zone, and price action suggests it’s starting to act as a ceiling.

If we look back at yesterday’s pattern, the market displayed the same setup: raging upward with momentum, only to reverse sharply from resistance. Now, with today’s slow grind upward and rejection signs, history could very well be repeating itself.

What’s Happening Technically?

1. Resistance Zone (4200–4220):

If the market fails to break and sustain above this level, it sets up perfectly for short positions. The resistance here is heavy, and bulls will need real volume to push through.

2. Daily Wick Formation:

The creation of an upper wick on the daily candle signals buying exhaustion. Sellers are waiting at these levels, and once momentum fades, dumps can be sharp.

3. Pattern Similarity:

Yesterday’s climb-then-reversal is mirroring today’s action. Markets often rhyme, and this is looking like déjà vu for traders who caught yesterday’s move.

4. RSI Levels:

Relative Strength Index is creeping up into the overbought zone, showing that bulls are tiring. This is another sign that momentum could shift toward the bears.

5. Sentiment Shift:

Market sentiment is leaning cautious. Traders aren’t piling in with conviction at these levels, many are waiting for confirmation, which can quickly tilt momentum toward selling pressure if a rejection confirms.

The Setup

Bearish Case: If the market fails to cross and hold 4200–4220, a clean dump toward lower supports is highly likely.

Bullish Case: Only a strong breakout above 4220 with volume can invalidate this bearish setup, opening the door for higher moves.

Conclusion; Right now, the market is moving up slowly, but the signals, resistance, daily wick, RSI, and repeating patterns, suggest that this climb could be nothing more than a setup for shorts. For traders eyeing positions, patience and confirmation around 4200–4220 is key. If rejection holds, the dump could be just around the corner.