On the 4-hour frame, the ETH price trend reflects a Wyckoff accumulation pattern within the range of $2,000 to $2,8,000, with a breakout and impulsive rise above the decisive threshold of $3,5,000. It reaches its climax. The asset also broke above the upper bound of a bearish wedge pattern, which is a bullish signal, and then completed a rebound.
If this correction holds and the buying pressure continues, Ethereum could extend its uptrend towards the $4,000 resistance. However, caution is advised as a bearish divergence between the RSI indicator and price suggests that the bullish momentum is weakening. This divergence indicates that the market may face a period of correction before deciding on its next significant move.
The observed movement in Ethereum’s price movement, particularly its failure to break below the $3.3,000 level, is consistent with significant liquidity below that point, as seen on Binance’s liquidation heatmap . This liquidity may consist of stop-loss orders and liquidation prices from large traders, i.e. whales, who actively protect their positions to prevent liquidation cascades.
