ETHBTC reveals Ethereum’s potential for temporary fatigue following an intense upward surge. Despite buyers breaking past significant resistance points, the price is currently hovering around a crucial structure and may face a local peak if momentum wanes.
The daily chart of Ethereum shows a clear break above the 100-day moving average, situated around the $2,100 region, and an attempt to retake the 200-day moving average close to the $2,600 mark. Additionally, the RSI is lingering in the overbought zone, indicating that the rally might be overstretched in the near term.
At the moment, the asset is holding just below the lower edge of the previously breached long-term ascending channel. A daily close above this level could rule out the possibility of a pullback and pave the path towards the $3,000 zone, which aligns with an earlier supply area. The $2,150 zone now offers sturdy support and could be a potential buying point if the market retreats.
The 4-hour chart illustrates Ethereum’s consolidation within a tight range around the $2,600 mark. The price is preserving its gains after breaking out from a descending channel and filling a series of bullish imbalances on its course. The RSI has also calmed, indicating a drop in bullish momentum but no immediate signs of bearish divergence. Should Ethereum break and sustain above the $2,600 zone, it could muster enough power to target the crucial $3,000 resistance level soon.
Exchange netflows remain generally negative, with a recent reading showing a net outflow of over 170K ETH. This suggests an ongoing trend of accumulation and long-term holding, as coins continue to exit centralized exchanges and move into self-custody. Persistent outflows during a price rally usually back the case for bullish continuation as they show a lack of selling intent.
However, it’s important to keep in mind that this behavior also calls for caution, as extreme bullish positioning can trigger abrupt corrections if the sentiment turns overly one-sided. Traders should closely watch changes in netflows, particularly if inflows start to increase around major resistance levels, as this could indicate local peaks and signal profit-taking.
