Ethereum Faces Key Test: Bullish Momentum vs. Overbought RSI
Ethereum (ETH) is showing strong bullish momentum on the daily chart, with price action hovering above critical moving averages and oscillators signaling growing buying pressure.
However, nearby resistance and visible order book imbalances could determine whether ETH extends its rally or faces a pullback.
Ethereum Technical Overview
Ethereum has been on a strong upward trajectory, with recent candles maintaining closes well above its short- and medium-term exponential moving averages.
The 9-day EMA is trending above the 20-day EMA, confirming sustained bullish sentiment and highlighting that buyers remain in control for now. Momentum indicators reinforce this outlook.
Daily chart for WETH/USD (Source: GeckoTerminal)
The MACD line continues to track above its signal line, with a widening histogram that suggests bullish strength is building.
Meanwhile, the Relative Strength Index (RSI) has pushed into the upper range, recently entering overbought territory, a sign of strong demand but also a potential warning of buyer exhaustion if conditions persist.
The next major resistance stands at $4,749.30. A breakout above this level could open the door to further upside and potentially mark the start of a new price discovery phase for Ethereum. On the downside, strong supports are clustered around $3,747.91, $3,628.25, and $3,469.40. If momentum falters, these levels could act as key defensive zones where bulls may attempt to regroup.
Ethereum Order Book Analysis
The current Ethereum order book reveals several notable bid walls that could provide temporary support in the near term.
The most significant lies at $4,305, where 117 units (≈$503,000) are parked. Additional walls at $4,306.61 and $4,309.49 represent considerable liquidity pockets. If these walls fail, the Ethereum price could see a sharp intraday dip of 0.2%–0.3%, potentially triggering tests of deeper support.
On the sell side, ask walls are stacked tightly between $4,326 and $4,332. Clearing the first significant wall at $4,326.29, valued at over $205,000, could set off a short squeeze and push the Ethereum price 0.2%–0.3% higher in quick succession. This creates a scenario where a decisive breakout above these walls could accelerate momentum toward the larger resistance zone near $4,749.
Potential Ethereum Trading Strategies
For bullish traders, the current structure favors looking for entries near support zones or on successful retests of cleared ask walls. The RSI’s overbought condition does suggest caution, but so long as momentum remains intact and order book liquidity supports higher levels, a push toward the $4,749 resistance is plausible. Stops could be set just below the $4,300 bid cluster to manage downside risk.
On the bearish side, traders may eye short setups if Ethereum fails to clear the ask wall cluster or if RSI divergence appears. In such cases, quick reversals toward the $3,747–$3,628 zone could provide profitable opportunities. However, given the strength of the broader uptrend, short positions may carry more risk unless paired with tight risk management.
Outlook
Ethereum’s technical structure is bullish, but the immediate battle lies within the $4,326–$4,332 order book resistance range. If cleared with volume, ETH could aim for $4,749 and beyond. Failure to do so, coupled with weakening RSI momentum, could spark a corrective move back toward deeper support levels. Traders should remain alert to liquidity shifts as these walls are tested.
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.
