Ethereum Price Analysis: Is the momentum of ETH faded after its ATH?

Ethereum has expanded its meeting to a new highest point of $ 4,960, but Momentum has begun to weaken. Bearish disorders on RSI suggest that buyers can lose strength, which increases the risk of a corrective phase, unless ETH can reclaim its highlights with conviction.

Technical analysis

By Shayan

The daily graph

At the daily graph, ETH broke slightly above his previous peak and registered a marginal higher ATH. However, the RSI did not succeed in making a new high, so that a bearish divergence was formed that reflects a waste momentum.

After this, it actively retreated to the centerline of the rising channel and now found support in the $ 4,400 – $ 4,450 region. If this level applies, ETH can consolidate before a new retest of the $ 4.9k zone. Conversely, a breakdown under $ 4,400 would uncover the $ 4K support range, which matches an earlier Swing High and marks the next large demand area.

In general, Ethereum acts within a sleek and dynamic reach, and a decisive outbreak in both directions will probably cause an impulsive movement.

The 4-hour graph

At the lower period of time, ETH recently carried out a swing of liquidity above $ 4.8k, but to turn sharp. This rejection coincided with the distribution in the Bitcoin market and confirmed short-term exhaustion between Majors.

Ethereum has since retired to the $ 4.4k Fibonacci cluster (0.618-0.702 Retracement), where it is currently floating above Trendline support. This confluence zone is a critical battlefield. Although retaining $ 4.4k could feed a retest of the $ 4.9k height test, losing this level would probably open the door for a deeper correction to $ 4K.

Onchain -analysis

By Shayanm

Ethereum experienced extreme volatility in August, characterized by sharp rallies followed by equally aggressive reversations. The liquidation heat sheds light on where Leverageed long and short positions are clustered, and emphasizes the levels that act as liquidity magnets for the price action.

During its rise to $ 4.9k, ETH led a dense cluster of short liquidations, in which aggressive sellers are wiped out. However, the sharp rejection that followed meant exhaustion on those highlights, so that late buyers catch in the process.

Currently, the HeatMap reveals two critical liquidity zones:

• Upside down: more than $ 4.9k, where not -tested short liquidations are stacked, so that a magnet is offered if Bullish Momentum gets the power back.
• Disadvantage: under $ 4K, where dense clusters of long liquidations can attract price action if the support of $ 4.2k cannot be held.

ETH currently consolidates within a liquidity -driven range between $ 4.2k and $ 4.9k. With considerable liquidity pools placed on both sides, the market remains very vulnerable to sharp, leverage, while the liquidity yachts continue to dominate the dynamics in the short term.