Ethereum Tests $4.2K Before Pullback
Ethereum Tests $4.2K Before Pullback: Analyst Warns on Buying at Highs
Ethereum (ETH) saw a strong rally, briefly crossing the $4,200 mark before pulling back to around $4,100. The move sparked both optimism and caution among market participants.
Analyst Insights
According to crypto analyst Michaël van de Poppe, this breakout signals bullish momentum, but jumping in at current levels could be risky. Instead of entering ETH directly at these highs, he suggests looking at ETH ecosystem plays like Layer-2 projects or DeFi protocols, which could offer better short-term opportunities.
Technical Indicators
RSI (Relative Strength Index) is currently at 72 on the daily chart, indicating strong bullish sentiment but also pointing to an overbought condition, which often leads to short-term pullbacks.
MACD (Moving Average Convergence Divergence) has confirmed a bullish crossover between the 186 and 196 levels, reinforcing upward pressure and trend continuation.
What’s Next?
If $ETH can close above $4,200 on the weekly timeframe, it may pave the way for a move toward its all-time highs set about a year ago. However, sentiment is still divided some traders expect a direct breakout, while others foresee a brief consolidation before continuation.
Summary for Readers
Ethereum briefly touched $4,200 before retracing to $4,100
Technicals are strong, but overbought signals suggest caution
Analyst van de Poppe recommends exploring $ETH ecosystem projects over direct buys at current levels
A weekly close above $4,200 could open the door to ATH retests
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