ETH Bearish Divergence!CRYPTOCAP:ETH has been in a strong uptrend, printing consistent higher highs (HH) and higher lows (HL). However, on the daily chart, the price has now reached a critical resistance zone near the $3,800–$4,000 range.
Key Points:
🔸 Bearish RSI Divergence
While price action has formed a new higher high, the RSI has printed a lower high, signaling bearish divergence.
This indicates that upward momentum is weakening even as price attempts to push higher — a common early warning of a possible short-term reversal.
🔸 Fibonacci Retracement Levels
The fib 0.382 at $3240 and 0.5 and 0.618 retracement levels are sitting around $3,000 and $2,800, respectively, potential targets if a correction follows.
🔸 Volume Profile
Volume is gradually declining as price approaches resistance, suggesting buyer exhaustion.
If the price breaks above the $4,000 psychological resistance, we could see a strong bullish move.
ETH is facing strong resistance after a powerful rally, with RSI bearish divergence and weakening momentum hinting at a possible short-term pullback. We should be cautious entering fresh longs here without confirmation.
Support: $3,200, $3,000, and $2,800
Cheers
Hexa
BINANCE:ETHUSDT BITSTAMP:ETHUSD
