$ETH Tests $ETH 4.2K Before Pullback, Analysts Urge Caution at High Levels

Ethereum ($ETH) surged past the $ETH 4,200 mark before easing back to around Ethereum 4,100. While momentum remains strongly bullish, several analysts warn that buying at such elevated prices carries higher risk.

Crypto analyst Michaël van de Poppe noted that Ethereum appears to be on the verge of breaking out toward new all-time highs. However, he believes the current level may not be ideal for fresh entries. Instead, he suggests looking at opportunities within the Ethereum ecosystem—such as Layer-2 solutions or ETH-based DeFi projects—which could potentially offer better short-term returns.

Bullish Technical Indicators in Play

Ethereum’s daily Relative Strength Index (RSI) is sitting at 72, showing strong buying dominance. While this reinforces the bullish trend, it also signals the possibility of a short-term correction before further gains.

Supporting the positive outlook, the MACD has confirmed a bullish crossover, hinting at a momentum shift in favor of buyers. ETH has recently broken through resistance, and traders are now watching to see if it can hold above key support levels.

Eyes on All-Time Highs

A weekly close above $4,200 would put Ethereum on track to challenge its previous all-time highs from last year’s bull market. However, market sentiment is split—some expect a quick move higher, while others anticipate a consolidation period before another push upward.

If buying pressure persists and the bullish pattern holds, Ethereum could enter uncharted price territory.

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