Top Highlights
- Despite overall bearish trends, Ethereum shows early signs of weakening selling pressure, with bullish divergence on the RSI hinting at potential relief rallies.
- ETH remains supported in the $1.46K-$1.53K zone, which has historically attracted buyers, while a break above $1.72K could signal a trend reversal.
- On the 4-hour chart, Ethereum is consolidating beneath a descending trendline, with a breakout above it possibly targeting the $1.72K-$1.78K zone and sparking a short-term recovery.
- Liquidity analysis indicates ETH might target overhead liquidity pools near $1.68K-$1.80K, with a potential squeeze if bullish momentum continues, but both sides remain vulnerable to volatility.
Ethereum Price Analysis: The Crucial Daily RSI Divergence That Could Save ETH From New Lows
Daily Chart Insights
Ethereum faces ongoing pressure across higher timeframes. The recent price action suggests a possible slowdown in bearish momentum. Although the general trend remains downward, signs of weakening selling pressure have surfaced.
After ETH was rejected from the $1,720 to $1,780 range, the price dropped back into a critical support zone between $1,460 and $1,530. This area has previously acted as a strong support in June and often attracts buying interest.
Most notably, a bullish divergence appears on the daily Relative Strength Index (RSI). While the price made lower lows in June, the RSI formed higher lows near oversold levels. This divergence indicates that downside momentum may be easing.
However, a divergence alone does not guarantee an immediate reversal. It is, nonetheless, a sign that sellers might be losing grip. As long as ETH remains above the $1,460 to $1,530 support zone, this bullish divergence stays valid. If the price breaks above the $1,720 to $1,780 supply, a reversal could be confirmed. Until then, the overall trend remains bearish, despite moments of improved momentum.
4-Hour Chart Breakdown
On the shorter 4-hour timeframe, Ethereum has been consolidating above a lower demand area. Since the rejection on June 22, every rally attempt has been halted by a descending trendline. Currently, ETH is compressing just below this trendline, with volatility declining.
This pattern creates a potential for a breakout. If buyers push past the trendline, the next target aligns with the $1,720 to $1,780 resistance zone. This move would match the bullish divergence seen on the daily RSI and could lead to a short-term rally.
On the downside, the key support remains around $1,520. Falling below this level would weaken the bullish scenario and reinforce the broader downtrend.
Ethereum is caught between support and resistance. The next move depends on which side gives way first.
Market Sentiment and Liquidity
Liquidity analysis shows a shift in market positioning. Large liquidity pools sit above the current price, especially between $1,680 and $1,800. ETH currently trades below these levels, making upward sweeps toward these pools more likely.
A breakout above the downtrend could trigger a liquidity hunt, leading to short liquidations and squeezing prices higher toward $1,700 to $1,800. Conversely, liquidity beneath the current price around support levels also remains significant, meaning both upward and downward moves carry risks of volatility driven by liquidations.
With the bullish RSI divergence and compression beneath resistance, Ethereum may attempt a quick liquidity grab upward before establishing a clearer trend. Watching the reaction around the $1,720 to $1,800 liquidity zone will help clarify Ethereum’s next major move.
This analysis highlights key technical signals that traders observe but does not predict specific future movements.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. This information may be outdated or incomplete. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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